training the technical work force. astd best practices series

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Carnevale, Anthony P.; And OthersTraining the Technical Work Force. ASTD BestPractices Series: Training for a Changing Work Force.First Edition.

American Society for Trdining and Development,Alexandria, VA.

Employment and Training Administration (DOL),Washington, D.C.ISBN 1-55542-201-290

99-6-0705-079-02212p.; Part of the Jossey-Bass Management Series. Forrelated documents, see ED 299 462 and CE 054961-964.

Jossey-Bass Inc., Publishers, 350 Sansome Street, SanFrancisco, CA 94104 ($24.95).Books (010) -- Information Analyses (070)

MF01 Plus Postage. PC Not Available from EDRS.Adult Education; Cooperative Programs; *EducationWork Relationship; *Employer Employee Relationship;*Industrial Training; Inplant Programs; *Labor ForceDevelopment; Outcomes of Education; ProfessionalDevelopment; Retraining; *School BusinessRelationship; Skill Development; Skilled Occupations;Technical Education; *Technical Occupations; TrainingMethods; Transfer of TrainingStrategic Planning

This document, resulting from a 3-year study,provides an overview of technical training in the United States,examines the occupations and workers defined as technical, describeswhere and how technical training is produced and delivered, anddiscusses the connection between technical training and the strategicgoals of the organization. The document's intended audience includesexecutives and managers, personnel and human resource developmentworkers, trainers, vocational educators, higher educationadministrators, and business and management consultants. Chapter 1explores what constitutes technical training, the size and scope ofthe technical work force, how technical wor--,rs are prepared fortheir jobs, and how they keep their technical skills up to date.Chapter 2 examines how technical training is structured insideemployer institutions and analyzes the systems thai. employers use todeliver technical training and how those systems are connected tostrategic goals. Chapter 3 looks at the many providers of technicaltraining--from educational institutions to original equipmentmanufacturers to vendors--and explores how employers and providersshare information about technological trends and future trainingneeds to forge partnerships for developing and delivering training.Chapters 4, 5 and 6 contain examples of how someof the nation'slargest employers organize and deliver technical training to theirwork force; centralized, decentralized, and integrated systems areexplored. The document concludes with a list of representative groupsof occupations among technical professionals,

technicians/technologists, and skilled trade workers and a 33-itembibliography. (CML)

Anthony P CarnevaleLeila I Gainer

i;, Eric SchulzF1111111111111111MW

2TRAINING THETECHNICALWORK FORCE

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ASTD Best Practices Series: Training for a Changing Work Force

1

Training theTechnical Work Force

joasey-Bass PublishersSan Francisco Oxford 1990

rLi

TRAINING THE TECHNICAL WORK FORCEby Anthony P. Carnevale, Leila J. Gainer, and Eric R. Schulz

Copyright © 1990 by: Jossey-Bass Inc., Publishers350 Sansome StreetSan Francisco, California 94104

Jossey-Bass LimitedHeadington Hill HallOxford OX3 OBW

American Society for Training and Development1630 Duke Street, Box 1443Alexandria, Virginia 22313

Copyright under International, Pan American, andUniversal Copyright Conventions. All rightsreserved. No part of this book may be reproducedin any formexcept for brief quotation (not toexceed 1,000 words) in a review or professionalworkwithout permission in writing from the publishers.

Library of Congress Cataloging-in-Publication Data

Carnevale, Anthony Patrick.Training the technical work force / Anthony P. Carnevale, Leila J.

Gainer, Eric R. Schulz.p. cm. (The Jossey-Bass management series)

Includes bibliographical references.ISBN 1-55542-201-2 (alk. paper)1. Technical education. 2. Technicians in industryTraining of.

I. Gainer, Leila J. II. Schulz, Eric R. III. Title. IV. Series.T65.C38 1990607'.1dc20 89-48806

CIP

Manufactured in the United States of America

The paper in this book meets the guidelines forpermanence and durability of the Committee onProduction Guidelines for Book Longevity ofthe Council on Library Resources.

JACKET DESIGN BY WILLI BAUM

FIRST EDITION

Code 9009

The Jossey-Bass Management Series

ASTD Best Practices Series:Training for a Changing Work Force

The material in this project was prepared under Grant No. 99-6-0705-75-079-02from the Employment and Training Administration, U.S. Department of Labor,under the authority of Title IV, part D, of the Job Training Partnership Act of1982. Grantees undertaking such projects under government sponsorship arc en-couraged to express freely their professional juugment. Therefore, points of viewor opinions stated in this document du nut necessarily represent the official posi-tion or policy of the Department of Labor.

6

Contents

Preface xi

The Authors xvii

Technical TrainingAdvisory Panel and Network xix

1. The Special Role of Technical Workersand Technical Training

1

2. How Technical Training Systems Work 24

3. How Technical Training Is Provided 44

4. Best Practices in Technical Training:Centralized Systems 77

5. Best Practices in Technical Training:Decentralized Systems 101

6. Best Practices in Technical Training:Integrated Systems 135

Appendix 183

References and Suggested Readings 189

Index193

ix

i

Preface1MMINIM20,

Technical workers represent about 18 percent of the Americanwork force, and it is generally believed that they receive a signifi-cant share (roughly 30 percent) of the $210 billion that employersspend on training annually. Moreover, technical workers areknown to be especially important to American competitivenessbecause they are the lifeblood of industries that produce the lion'sshare of internationally traded products and services. In addi-tion, technical workers invent and produce technologies thatresult in the "upskilling" of all workers. The continuous integra-tion of new technologies with more highly skilled labor is widelyrecognized by labor economists as the true source of Americancompetitiveness.

Training the Technical Work Force provides an overview oftechnical training in the United States, including the size andscope of the technical work force, how these workers get theirtraining and who provides it, and how training is structuredinside employer institutions. The book examines the occupa-tions defined as technical and the number of people workingin those occupations in the United States; takes a look at wherein an organization technical training is designed, developed, anddelivered; and discusses the connection between technical train-ing and the strategic goals of the organization. The book alsoaids employers and educators by discussing the entities outsideemployer organizations that deliver technical training. Examplesand case studies are provided throughout to illustrate the manydifferent structures and strategic connections described in theoverview.

xi

0

xii Preface

This book is the result of research underwritten by a grantfrom the U.S. Department of Labor (DOL) and conductedunder the auspices of the American Society for Training andDevelopment (ASTD), a nonprofit professional association repre-senting approximately 50,000 practitioners, managers, adminis-trators, educators, and researchers in the field of human resourcedevelopment.

The information in this volume reflects only some of thefindings gathered during a thirty-month research effort that ex-plored training practices in America's employer institutions.Other findings are detailed in two companior books, WorkplaceBasics: The Essential Skills Employers Want and Training in America.The Organization and Strategic Role of Training, and a companionmanual, Workplace Basics Training Manual, that provides a step-by-step process for establishing a basic skills program in theworkplace (all published by jossey Bass). In addition, the proj-ect produced five booklets that were published in 1988 and 1989:Workplace Basics: The Skills Employers Want, The Learning Enter-

prise, Training America, The Next Economy, and Training Partner-ships. Linking Employers and Providers (available from ASTD, 1630Duke Street, Box 1443, Alexandria, Va. 22313).

How the Research Was Conducted

The ASTD-DOL project was staffed by a team of ten pro-fessionals and a support staff. This team was greatly assistedby ASTD members who volunteered their expertise and pro-vided access to their own corporations. In addition, experts fromthe fields of economics, adult education, training, public policy,and strategic management contributed analyses that provideda contextual backdrop for our work.

In 1986, when we launched this project, we did so with adetermination that we would conduct applied research. Through-out the project, we kept our sights firmly focused on the realworld, exploring what makes the technical work force tick andthe training that keeps it ticking. In all study areas, includingtechnical training, we began by surveying the current literature,looking for trends and patterns; this effort helped us identify

9

Preface xiii

the leaders in various disciplines and draw some preliminaryconclusions. We tested our preliminary findings on a cadre ofindividual experts drawn from ASTD's membership and askedthose members to identify other experts and practitioners whomight provide feedback and insights. We continued along thispath, and our list of contacts grew. From them we formed advi-sory panels that met during 19d7 to advise us on our directionand findings. We also built networks of more than 400 expertsand practitioners (the technical network alone had 114 members)who received periodic updates of findings and were asked forfeedback.

Corporations and other private and public employer in-stitutions were tapped extensively to provide actual examplesof successful training systems and practices. We conducted on-site studies and much telephone interviewing, using speciallyconstructed interview instruments that ensured we would gatheruniform information. These employer "snapshots" are usedthroughout this book to complement and illustrate our findingsand support the theoretical underpinnings of our work.

In developing our first-draft reports, we enlisted more thanthirty experts and practitioners to review and comment on them.Their insights are reflected in this book, which constitutes ourfinal report.

Who Should Read This Book

The findings in Training the Technical Work Force are de-signed to provide readers with an understanding of America'stechnical work force, the learning systems that keep that workforce well skilled, and how actual corporations are managingtheir technical training needs. We believe that it can serve asa useful reference document on technical training for many yearsto come. Its intended audience includes executives and managersin all kinds of public and pri to organizations that employand/or train technical workers; human resource developmentand training practitioners; personnel and human resource man-agement practitioners; business and management consultants;vocational educators; college and university administrators; and

xiv Preface

academics in the fields of education, business management, in-dustrial relations, and other areas.

Organization and Content

Readers should view this book as a compendium of facts,figures, and case examples. It has six chapters.

Chapter One explores the definition of technical trainingand what constitutes technical training, the size and scope ofthe technical work force, how technical workers are pi.eparedfor their jobs (qualifying training), and how they keep theirtechnical skills up-to-date (upgrading training).

Chapter Two examines how technical training is struc-tured inside employer institutions. This chapter also providesan analysis of the systems that employers use to deliver technicaltraining and how those systems are connected to strategic goals.

Chapter Three looks at the many providers of technicaltraining from cd,:cational institutions to original equipmentmanufacturers thrcugh vendors. It also explores how employersand providers share information and views about technologicaltrends and future training needs, and forge partnerships todevelop and deliver training programs.

Chapters Four, Five, and Six contain examples of howsome of the nation's larg..-st employers organize and delivertechnical training to their work force.

Acknowledgments

Special thanks to Shari L. Holland, who served as researchassistant Jn the project; Dawn Temple, Kim Genevro, andStacey Wagner, who provided administrative assistance, DianeL. Charles, who managed our research symposium and the pro-duction of the manuscript; Diane Kirrane, who provided edi-torial assistance; and Gerald Gundersen and Ray Uhalde of theU.S. Department of Labor, who provided insights and guidancealong the way.

The project team also wishes to acknowledge the con-tributions of the following experts, who consulted with us and

Preface xv

provided contextual analyses: Eileen West and Rick West ofWest Training and Logistics Systems, who also provided someof the corporate examples; Harold Goldstein, former commis-sioner of the U.S. Bureau of Labor Statistics; Robert Craig,former vice president (ret.) of ASTD; William Ashley and RoyButler of the National Center for Research in Vocational Educa-tion, Ohio State University; Joe Bieddenbach of the Universityof South Carolina's Swearingen Engineering Center; and RichardClapper of the National Aeronautics and Space Administration.

Finally, we want to thank our advisory panel and networkparticipants, who contributed their advice and counsel.

Alexandria, VirginiaFebruary 1990

Anthony P. CarnevaleLeila J. GainerEric R. Schulz

The Authors

Anthony P. Carnevale was project director and principal in-vestigator for the ASTD-DOL project and is chiefeconomistand vice-president of national affairs for ASTD. Carnevale alsocurrently serves as a board member of the National Center onEducation and Employment at Columbia University; the Na-tional Center on Education and the Economy, cochaired byMario Cuomo and John Scully; and the National Commissionon the Skills of the American Work Force, comprised of Amer-ica's leading business executives, union leaders, education andgovernment officials.

Prior to joining ASTD, Carnevale was the governmentaffairs director for the American Federation of State, County,and Municipal Employees (AFSCME). He also served as a co-moderator for the White House Conference en Productivity andas chairman of the Fiscal Policy Task Force for the U.S. Coun-cil on Competitiveness. Carnevale has held positions as seniorpolicy analyst for the U.S. Department of Health, Education,and Welfare; senior staff economist for the U.S. House of Rep-resentatives Government Operations Committee; and seniorstaff member for education, employment, training, and socialservices for the U.S. Senate Committee on the Budget. He alsowas a high school teacher and social worker in his home stateof Maine. Carnevale was coauthor of the principal affidavit inRodriguez v. San Antonio, a U.S. Supreme Court action to remedyunequal tax burdens and education benefits.

Carnevale has a Ph.D. degree from the Maxwell Schoolof Public Affairs, Syracuse University. He holds M.A. degrees

xvii

1 ,

xviii The Authors

in social science and in public administration from SyracuseUniversity and a B.A. degree in intellectual and cultural historyfrom Colby College.

Leila J. Gainer managed the daily operations of the ASTD-DOLproject -id is ASTD's director of national affairs. She servesas a m. , her of the advisory board for the Center for Businessand Government Services of the Northern Virginia CommunityCollege and as a member of the National Alliance of Businessadvisory committee on structural work-based learning. In 1989she also served as an informal adviser to ABC and PBS for theProject Literacy U.S. (PLUS) Campaign.

Before joining ASTD, Gainer directed the Center forRegional Action for the National Association of Regional Coun-cils (NARC), working with state and local government-electedofficials around the nation. In her nine years at NARC, Gainerserved as director of federal liaison, communications and re-s,:arch; Washington information coordinator; and editor of theWashington Report. While at NARC, Gainer was honored byPresident Carter for her efforts leading to passage of the RuralDevelopment Act of 1980. Gainer served as a reporter and editorfor Commerce Clearing House, Inc.'s (CCH) bi-weekly publica-tions College and University Report and Commodity Futures. In theearly 1970s she was managing editor of CCH's Labor Law Guideand on the staff of Labor Law Report. Gainer has a B.A. degreefrom Frostburg State College, Maryland.

Eric R. Schulz was the researcher for the technical training andmeasurement portions of the ASTD-DOL project. Before join-ing the project, Schulz was a human resource research associatewith Honeywell. He is a graduate of the University ofLouisvilleand holds an M.A. degree in industrial relations from theUniversity of Minnesota.

14

Technical Training Advisory Panel

Ted AllisonDirector of Human ResourceSupport SystemsMcDonnell Douglas AstronauticsCompany

Rod BoyesVice PresidentGMI Engineering and ManagementInstitut.-

Ralph DosherCorporate ManagerEducation, Training, andDevelopmentTexas Instruments, Inc.

Gerald GundersenChief, ResearchUnited States Department ofLabor

Robert HofstaderManagerEducation and DevelopmentExxon Central Services

Charlie HooverChairmanResearch and DevelopmentAmerican Telephone & Telegraph

Nancy KuhnManagerEducation and TrainingAluminum Company of America

Mike LiptrotManagerTraining Development andEmployee RelationsMorton Thiokol, Inc.

John RobinsonManagerUniversity and External RelationsMotorola Training andEducation Center

Richard T. SandsSenior TrainerMerck Sharp & Dohme

Julie WalterManager of TrainingCrouse- Hinds/CooperIndustries

Harold GoldsteinAdvisorTechnical Training

Eileen WestAdvisorTechnical Training

Technical Training Network

Ted AllisonMcDonnell DouglasAstronautics Company

Steven AustinFMC Corporation

xix

1 t;

xx

G. E. BakerTexas A&M University

Douglas J. BarneyNorthern Telecom, Inc.

John P. BartoszekAyerst Laboratories

Nancy BauderBell Atlantic System Leasing

William C. BeanInternational Business Machines

Joseph BenkowskiMiller Brewing Company

Rick BilbroCarolina Power & Light Company

Herman BimbrauerInstitute for Business and Industr

Ambrose BittnerUnited States Department of Labor

Rod BoycsGMI Engineering and Management

Institute

Franklin BrownHorizon's Technology, Inc.

Elizabeth J. CarlisleTicor Title Insurance

Christina CaronBritish Embassy

Patrick A. CataldoDigital Equipment Corporation

M. Linda ChapmanWashington State Department of

Personnel/Employce Developmentand Training Division

Ivan CharnerNational Institute for Work and

Learning

Vernon C. DahlstromTRWRoss Gear Division

Thomas R. DenmanFischback & Moore Incorporated

16

Advisory Panel and Network

Robert DeSioNational Technological University

David P. DesrosierHarris Corporation

Robert DeitrichKroger Company

Ralph T. Dosher, Jr.Texas Instruments, Inc.

Kent DubbeMinnesota Mining and

Manufacturing Company

Philip S. EdwardsWE Partners Company

Michael EmmottManpower Service Commission

Charles FieldsHartford Steam Boiler and

Insurance

Gene FreidAgway, Inc.

Franz FureyPolaroid Corporation

Lane R. GarrisonSierra Pacific Power Company

Clyde W. GastWeirton Steel Corporation

Norman J. GocInternational Business Machines

Irvin GordonIndependence Bancorp

Eric Frank GrosseUnited Telephone Company of Ohio

Charles B. GustafsonTechnical Instruoional Institute

Robert L. HalikAllied-Signal EMS Sector

Kcnt W. HamlinInstitute of Nuclear Power

Operations

Marlys HansonHanson & Associates

Advisory Panel and Network

William M. HarralARCH Associates

G. Richard HartshornFord Motor Company

Larry HirschhornWharton Center for Applied

Research

Ross L. HodgkinsonTACK

Robert A. HofstaderExxon Central Services

Richard D. HolzrichterPanhandle Eastern Pipeline

Company

Charlie HooverAmerican Telephone and Telegraph

Angie HowardINPO

William JenkinsPower Safety International, Inc.

Marilyn JoyceThe Joyce Institute

Chip KchoePerkin-Elmer

Thomas J. KruseReynolds Aluminum International

Nancy KuhnAluminum Company of America

Larry E. La ForceHarris Corporation

Robert J. LanphcarWestinghouse Materials of Ohio

Don LedbetterLoral Data Systems

David LeSageNASA

Bernard Libert oreDiebold, Incorporated

Michael S. LiptrotMorton Thiokol, Inc.

xxi

Harry LitchfieldDeere and Company

Gale LongOm 1- Industries

Nicholas P. LuzakPhiladelphia Electric Company

William MalloryFord Motor Company

Margaret L. MaloneyGoldome Realty Credit Corporation

Paul ManningINPO

Barry J. MartinCardinal Industries, Inc.

Michael MeadChemlawn

James MeadowsTampa Electric

Larry G. MeeseNorthern Telecom

Celeste MillerCAM Writers

Robert L. MorrisBoston Edison Company

Roy W. MurphyRohm & Haas Delaware Valley

Theodore NagyBorg Warner Corporation

Thierry NoyelleConservation of Human Resources

Jay OrlinNorthern Telecom Semi-Conductors

Group

Philip J. s'apolaConsolidated Edison

Phil ParizinoDeluxe Check Printers

Michael R. PelletM-Squared, Limited

17

xxii Advisory Panel and Network

David PerryKellogg Company

J. J. PersenskyUnited States Nuclear Regulatory

Commission

L. F. PhillipsUnion Pacific Railroads

Craig D. PierCraig Pier Consulting

Gary Plummer'3F Goc .ich

Don PorterUrban Engineering

Andrew C. PoynterSpectra Physics

Robert PrifrelBusiness Incentives Inc.

Mary M. ReillyAmerican Telephone and Telegraph

Communications

Warren ReiningerShell Oil

John W. ReynoldsSafeco Insurance Company

John W. RobinsonMotorola, Inc.

R. Michael RudmanLechmere, Inc.

Dr. Julian SanchezIntel Corporation

James ScottFederal Express Corporation

Gary SeaburryCarrier Building Services

Richard T. SandsMerck Sharp and Dohme

1G

Paul H. SeldenPerformance Management, Inc.

George B. ShawRochester Gas and Electric

Corporation

Nicholas A. SieckoEEC International Corporation

Stanley SmithThe Clorox Company

Thomas SmitkoSanta Fe Railway Company

Dr. Gerald SusmanPennsylvania-State-University

Ron TillotsonSierra Pacific Powcr Company

Gary TomeyAmtrak

Dr. William R. TraceyHuman Resources Enterprises of

Cape Cod, Inc.

Douglas M. VandergriffJ. A. Jones Applied Research

Company

Tony WalkerGould, Inc.

James WallbeoffPratt & Whitney

Tommy J. WaiterGeneral Telephone and Electronics

Service Corporation

Julie WalterCrouse-Hinds/Cooper Industries

Bryan WoodsSouthern Railroad

Lyn WrightSiemens Information Systems

James YaleHorace Mann Companies

Training theTechnical Work Force

In

CHAPTER!

The Special Roleof Technical Workersand Technical Training

Technology will continue along its evolutionary path into the1990s and beyond, bringing new challenges for those who toilon the production line, in the laboratory, and in the office. Com-puterization, robotics, and other sophisticated automation holdthe promise of new opportunities for efficiencies and innova-tions. But to seize these opportunities and to surmount thechallenges that are to come the United States needs a well-trained technical work force.

Most employers agree that this nation's future prosper-ity depends on the energy, flexibility, and creativity of a well-trained work force that is knowledgeable, innovative, efficient,and dedicated to quality (William T. Grant Foundation Com-mission on Work, Family, and Citizenship, 1988). Increasing-ly, however, these same employers are concerned that securingthe quality and quantity of technical training required to buildsuch a work force is the greatest challenge of all.

For employers that utilize technical workers, the skills ofAmerica's emerging labor pool (ages sixteen to twenty-four) andthe demands of more and more sophisticated technologies areon a collision course. It is ironic that as the workplace becomesmore technologically complex, the rising pool of available work-ers is lacking in many of the simplest and most basic skills, in-cluding reading, problem solving, computation, and knowing

120

2 Training the Technical Work Force

how to learn. In fact, fully 30 percent of those potential workersare likely to come from populations that are disadvantagedthe poor, unemployed, or unemployable (Butler, 1988).

Moreover, technical work requires more education andtraining than any other work. Training in a technical disciplinemust be preceded by a sound grounding in the basic skills thatprepare an individual to understand and acquire the more sophis-ticated constructs of technical work. This places a premium on theindividual who has the basics and is therefore equipped to handlehigher-level technical training. Given the demographic picture,building tomorrow's technical worker may very well mean doingso from the basics up a costly and time consuming endeavor.

What is Technical Training?

Technical workers are people who use principles from themathematical, physical, or natural sciences in their work. Forthe most part, they are employed in industries that rely on theapplication of scientific and mathematical principles to createproducts, services, or processes. To perform technical work,employees need a theoretical understanding of their jobs andthe physical capability to accomplish the tasks of those jobs ac-cording to established performance standards.

Technical training enables individuals to apply theoriesand principles of natural and physical science to technical prob-lems. It imparts an understanding of the scientific or mathemati-cal base underlying the performance of a task. And it illustratesthe physical aspects of the technical task. This blending of scien-tific and mathematical knowledge with actual performance quali-fies training as technical. For the purposes of this book, technicaltraining does not apply to disciplines such as law, the humanities,or the social sciences, in which scientific or mathematical theoryis not required.

Mapping Technical Training:The Size and Scope of the Technical Work Force

Attempts to define technical training and the technicalwork force are always somewhat arbitrary. The definition used

21

The Special Role of Technical Workers 3

herethat technical employees use theoretical principles frommathematics or the natural sciences in their work is no excep-tion. In general, this definition includes technical professionalssuch as scientists, doctors, and engineers; technicians such asdental hygienists, drafters, and broadcast technicians; and skilledtrade (blue-collar) workers such as those in construction andmanufacturing. A list of occupations requiring technical train-ing appears in the appendix.

By this definition, there were 20.3 million technical work-ers in the United States in 1986, representing 18.2 percent ofthe American work force. Technical professionals made up 24percent .olthe,technical work_force, ..technicians_m ade. up 18 per-cent, and skilled trade workers made up 58 percent.

In addition to technical employees, there are two relatedcategories of workers. The first includes technical support em-ployees, such as technical managers and sales and marketingpersonnel. These people work in institutions whose productsor services are technically based. People in technical supportjobs require some technical knowledge and often already havea technical background. The second related category is com-posed of technical education and training personnel the tea-chers, professors, and trainers who prepare the technical workforce.

Table 1 compares the training and development of tech-nical employees with all other types of employees. It shows thatthe nation's 4.8 million technical professionals get the mosteducation and training in preparing for their jobs and the mostupgrading once on the job. Principal among techuical profes-sionals are the nation's 2.5 million health professionals, 1.5million engineers, and 800,000 natural, mathematical, biolog-ical, and computer scientists. The 3.5 million technicians getmore education and training in preparation for their jobs andupgrading once they are on the job than any other occupationalgroup except technical and nontechnical professis.)Atals. Morethan 1.5 million technicians are in the health field, includingnurses, physical therapists, X-ray technicians, and other opera-tors of diagnostic equipment. Almost 1.3 million technicians suchas circuit board assemblers and quality control technicians whooversee laser equipment in automobile assembly plants are in

iigiiimissikvarrow

Table 1. Sources of Qualifying and Upgrading Training: All Employees.

Occupational Group

Percentage with Qualifying Training Percentage with Upgrading

TotalFrom

School

Employer-Based

TotalFrom

School

Employer-Based

Formal Informal Formal InformalAll employs -s 55 29 10 26 35 12 11 14

Nontcchaf....1 professionals 92 87 6 16 47 47 10 11Management support specialists 77 52 11 38 52 20 20 17General managers 71 43 12 39 47 18 17 16Clerical 57 33 7 31 32 10 10 15Saks 43 15 12 28 32 7 13 15Service 36 13 9 18 25 7 8 12Transportation 36 2 8 26 18 2 6 9Machine operators 37 6 6 26 22 3 4 16Laborers 18 2 2 13 14 2 2 10Technical professionals 94 83 14 23 63 25 23 17Technicians 85 58 14 32 52 20 18 19Craft 66 11 16 44 26 7 7 13Precision production 61 17 15 38 36 8 13 18Mechanics and repairers 68 19 18 39 44 7 22 17Extractive 56 4 13 48 34 6 13 18

Source: Carey, 1985.Note. Individual percentages can add up to more than the totals because some employees received training from more thanone kind of source.


engineering and the sciences. Another 800,000 are broadcast,computer, and air traffic technicians.

There are almost 11.8 million skilled trade workers, in-cluding those in precision production jobs: mechanics, installers,repairers, and extractive (mining) workers. These workers re-ceive only slightly more education and training to qualify fortheir jobs and upgrading once they are on the job than doesthe average worker. Moreover, they rely much more heavilyon informal learning for preparation and upgrading than dotechnical workers.

Not included in the 11.8 million estimate are the nation'smachine operators and assembly workers, although their jobsare increasingly technical in content. Automated manufactur-ing is increasing the depth and range of skills required in itsjobs. As a result, many of the 7.6 million machine operator andassembly jobs are being reconfigured into fewer jobs that com-bine higher skill requirements and more technology; they are,in effect, being upgraded into technical jobs. Although the sizeof the technical work force is difficult to quantify, many operatorand assembly workers clearly have already become technicalworkers, including as many as 2 million operators and assem-blrs who work in high-tech industries. Table 1 reveals that theseworkers receive less qualifying training than craft workers receiveand little training once they are on the job.

The distribution of technical workers is uneven throughoutthe economy, with the largest number located in the service sec-tor, principally in health care. Manufacturing employs about14 percent of all technical workers.

The construction industry has the highest concentrationof technical workers (33 percent of all construction workers aretechnical workers). The mining, transportation, and utilities in-dustries are next, with nearly 20 percent of their employees intechnical occupations. Of the employees in manufacturing, ser-vices, and government, about 16.7 percent (one worker in six)are technical workers.

Although the workers in some tecnnical occupations suchas health care are predominantly women, men generally domin-ate the technical work force, representing 76 percent of all tech-


nical workers. Table 2 shows that women, blacks, and Hispanicsare generally underrepresented in the technical work force.

Table 2. Employment in Technical Occupationsby Sex, Race, and Ethnicity, 1986.

Women Placks Hispanics

All workersTechnical workers

44.4%24.3

9.9%6.4

6.6%4.8

Source: Goldstein, 1988.

About 1.5 million technical workers are self-employed,principally as doctors, engineers, carpenters, mechanics, andrepair workers.

As shown in Table 3, technical workers earn well abovethe average for all workers. Male technical workers earn morethan their female colleagues, but the disparity is less in technicaloccupations than in the economy as a whole. Female technicalworkers earn 84 percent of what male technical workers earn,whereas in the economy as a whole, female earnings are only69 percent of male earnings.

Table 3. Median Weekly Earnings, 1986.

Both Sexes Men Women Ratio

All workers $358 $419 $290 .69Technical workers $482 $501 S420 .84

Source: Goldstein, 1988.

Training and Educating the Technical Work Force

Technical Professionals. Technical professionals are edu-cated and trained to make broad judgments, to invent, and toapply a particular intellectual discipline to problem solving. Theyare responsible for developing new products and designs, en-hancing existing products, and conducting research. Those in-volved in health care are responsible for diagnosing illnesses .ndprescribing treatment. Some may be responsible for formalmanagement or exercising direct authority over subordinates.

.2u t"


Technical professionals are among the most highly edu-cated and best trained of the nation's employees (see Table 4).Relative to other employees, they tend to receive very substantialamounts of formal education and employer-provided formal andinformal training in qualifying for their jobs and upgrading theirskills once they are on the job.

All technical professionals rely heavily on schools to pie-pare them for their jobs, although relative to other technical pro-fessionals, engineers and mathematical and computer scientistsrely less on schools and more on employers for the training theyneed to qualify for their jobs. This suggests that engineering,mathematical, and computer jobs are more tailored to a par-ticular industry and pt iuct. Engineers, as well as natural andcomputer scientists, rely on formal employer training to a greaterextent than schooling for their upgrading.

Health care professionals receive the most upgrading, rely-ing upon schools more than their employers for both qualifyingand upgrading training. This suggests that their skill needs arenot particularly employer-specific and that a stronger bond existsbetween health care professionals and their professional specialtythan between the professional and a specific employer.

Recognizing the high degree of individualized trainingrequired to keep the technical professional up-to-date in his orher discipline, companies have traditionally played a relativelypassive role in training their technical professionals. The com-pany role has most often been one that focuses on underwritingthe cost of training, advising workers on course selection, anddelivering training that could be considered generic (technicaltraining that addresses new technologies and processes intro-duced on the job, explains new applications of existing technol-ogy, or demonstrates new products). In recent years, however,competitive pressures have forced companies to integrate thedevelopment and design of innovations with production andmarketing. This attempt to build more integrated structures isleading employers to play a more active role in the developmentand delivery of training and human resource development fortheir technical professionals.

Nevertheless, professional development for technical pro-fessionals remains a largely autonomous activity. While most

Table 4. Sources of Qualifying and Upgrading Training: Technical Professionals.


Occupational Group ThalFrom

School

Employer-Based

TotalFromSchool

Employer-Based

Formal Informal Formal InformalArchitects 94 91 13 31 41 10 7 23Engineers 90 73 14 33 57 23 28 18Health care professionals 96 96 10 7 72 33 8 8Mathematical and computer scientists J 66 26 41 65 21 36 24Natural scientists 97 91 9 26 59 30 25 15

Source: Carey, 1985.Note: Individual percentages can add up to more than the totals because some employees received training from more thanone kind of source

27


training for technical professionals is intended to update skillsor knowledge in the face of new technology, the exact applica-tion of new knowledge is usually left to the individual. For ex-ample, a seminar may introduce a new synthetic material andexplain its development, properties, and uses. The design en-gineer who will use the material to create a new product usesthe information much differently than the engineer who will testthe product once it is developed.

Employer selection of training providers for technical pro-fessionals varies depending on whether the information is pro-prietary, such as a new technology developed through in-houseresearch and development; whether the expertise to deliver thetraining is available in-house; and whether the expertise is readilyavailable and more cost-effective from outside sources.

When the training is proprietary or when it is more cost-effective, it is developed and delivered in-house. When an orga-nization determines that it is more cost-effective to rely on out-side sources to train its technical professionals, it is likely to turnto colleges and universities, professional associations, or originalequipment manufacturers (OEMs) and other vendors.

The technical professional's ability to glean diverse ap-plications from generic material makes course work, seminars,and symposia, such as those offered by colleges and universities,professional associations, and other public providers, a goodalternative to in-house training. Aside from their course offer-ii_gs, colleges and universities are the most frequent source ofoutside seminars, drawing about $41 million, or 35 percent ofthe $117 million spent annually by employers to provide semi-ars to their technical professionals.

OEMs and other vendors are another major source oftraining for technical professionals. They supplied approximately$175 million worth of off-the-shelf training materials, custommaterials, and other training support services to technical pro-fessionals in 1987. Other sources of training (both in-house andoutside) for technical professionals account for an additional $1.4billion per year.

While specific curricula for technical professionals varywidely according to professional discipline and specific applica-tion, employer-provided training falls generally into three broad

(,) -(.1


categories: (1) new technologies and processes within the specificfield of study, (2) new applications of existing technologies, and(3) new product demonstrations.

Technical professionals are also likely to take safety train-ing and hazard communication. Safety training includes the pro-per use of equipment; personal safety when using equipment;storage, handling, and disposal of hazardous materials; first aid,and even safety in the home. Hazard communication includesinformation on the harmful effects of hazardous materials foundin the workplace; proper storage, handling, disposal, and clean-up of hazardous materials; tl.,. employer's responsibility for com-municating with its employees about workplace hazards; howto recognize contamination, both in the workplace and on one'sperson; protective measures to take against occupational ill-nesses; and procedures to follow when inflicted with an illnessor injury caused by hazardous materials.

Service-oriented curricula are more dependent on the par-ticular industry than are curricula fin manufacturing and includean in-depth study of the technical aspects of the service as itrelates to sales, marketing, and potential new related services.

A growing number of manufacturing companies are pre-senting training in integrated manufacturing to their technical pro-fessionals. Integrated manufacturing covers all phases ofmanufacturing, including concept development, product designand development, production, distribution, and marketing. Theprinciple of integrated manufacturing is to bring technical pro-fessionals together with production workers, sales and marketingpersonnel, and other members of the product team. The pur-pose is to reduce the time required to introduce new technologiesand market new products, to improve efficiency and quality,and to encourage new innovations. Through training in inte-grated manufacturing technology, technical professionals canbe responsible fo_ more than one job or process rather than asingle function or process, as was previously the case. Thisparallels cross-training and the trend toward work teams, whichis becoming increasingly common among technicians and craftworkers. It results in a more knowledgeable and versatile workforce that is more responsive to organizational, technological,or industrial shifts.

29


Whether from manufacturing or service, technical pro-fessionals in supervisory positions also receive training in non-technical areas, including labor relations, planning, delegating,problem solving, time management, interpersonal skills, mate-rials management, team building, and leadership.

The average amount of time spent training technical pro-fessionals each year is difficult to determine for two reasons. First,much of the training for this group occurs away from the work-place. Second, training data are not readily available in organiza-tions lacking direct management support.

The training managers interviewed for this book indicateda wide range in the amount of training provided to technicalprofPssit nals. Those in industries with very rapidly changingtechnologies reported th:...t their technical professionals spend atleast ten days each year updating their skills. (The highest aver-age was twenty-six days at a leading manufacturer of semicon-ductors and microprocessors.) Trainingmanagers in industriesutilizing more stable technologies indicated a range from no pro-fessional development (an oil company) to five days of develop-ment per year (a metals manufacturer).

Technicians. Technicians include employees whose pri-mary expertise lies in a particular technical specialty area. Whiletechnicians have a considerable depth of knowledge and highlydeveloped skills in their areas of expertise, they generally lack thebreadth of knowledge in the theoretical aspects of their specialf;esthat is required of technical professionals. Although many techni-cians and technologists are graduates of four-year colleges, manyhave developed their skills and knowledge through technical orvocational schools, community colleges, or on-the-job training.After technical and nontechnical professionals, technicians arethe most highly educated and well-trained employees in theAmerican work force (see Table 1).

Technicians usually receive training that applies directlyto their jobs. This training has its basis in theory but is focusedmore directly on the application of theory to the job than is train-ing for technical professionals.

Employer selection of training providers for techniciansfollows the same pattern as for technical professionals. When


training is proprietary or when it is cost-effective, it is designedand developed in-house. When it is more cost-effective to relyon outside sources to train technicians, employers turn mainlyto colleges, universities, and professional associations.

Because of the nature of technician training, programssponsored by colleges (including two-year colleges), universities,vocational schools, and professional associations are the mostfrequent (but not the largest) source of training outside the com-panies themselves. Aside from course offerings, colleges anduniversities draw 35 percent or about $24 million of the $68.9million spent annually by employers to send their techniciansto seminars. In addition, vendors, especially OEMs, supply aconsiderable amount of technician training and related supportmaterials. Of the more than $3.28 billion spent by employerorganizations each year for outside training and training sup-port services, approximately $103.2 million goes for techniciantraining.

Training curricula for technicians are more job-specificthan curricula fcr technical professionals. However, most techni-cian training is sequential and can be divided into three cate-gories: (1) principles of new technologies (primarily equipmentand processing techniques), (2) new applications for existingtechnologies, and (3) special courses required for licensing orcertification or refresher courses required for license renewal orrecertification.

Hull (1986) has proposed a detailed curriculum for w..athe terms Superteclzs. The cm riculum is composed of three phasesof instruction, grouped functionally as basic core subjects, tech-nical core subjects, and high-tech core subjects.

Hull's basic core includes subjects and courses designedto provide a basis on which the remainder of the curriculumcan build. The technical core expands on the basic core, andthe high-tech core narrows courses to specific areas of advancedstudy in the core area. New courses are added to the high-techcore as new theories result in emerging technologies.

The goal of Hull's curriculum is to ensure that the techni-cal worker ha's the knowledge and flexibility to work efficiently intoday's changing technological work force. Hull's model is valu-able as an example of how a tiered curriculum can be developed.


Using the definitions of technical training and the targetgroups selected for this book suggests that training curricula fortechnicians vary widely and significantly, even at the basic level.Specifically, the curricula are industry-specific, assume highentry-level skills, and involve a strict level of supervision, espe-cially at the second and third tiers. An example of the specificnature of the courses and of the higher entry skill and knowledgeIcycis can be easily demonstrated by comparing sample coursesfor computer technicians and nursing candidates. Such a com-parison is shown in Table 5.

Table 5. Comparison of Basic Coursesfor Computer Technicians and Nursing Students.

Generic Area

Courses'

Computer Technician Nursing Student

Mathematics Metric conversion Metric conversionAlgebra Algebra

Science Electricity ChemistryComputer science Anatomy

Communication Interpersonal skills Interpersonal skillsPsychology

Not intended to be a complete basic-level curriculum.

While all courses can be factored into Hull's genericareas,the specific courses in the basic core imply high entry skill andknowledge requirements for the career fields noted and, quiteprobably, for most technician job categories. Second- and third-tier courses for technicians expand un the basic skills to includetraining in specific systems and/or equipment that will be usedon the job. This factor further supports the more narrow, indus-try-focused approach to generic curricula for technicians.

Technicians also receive specific training in proceduresrequired for successful job operation, especially ifthe proceduresare regulated by a government agency. For example, a techni-cian in a drug company receives training in operating and main-taining a dean room, laboratory technicians in hospitals receive

0r)t.1 (...#

14

,,,SEMEMIIMMENiliSA

Training the Technical Work Force

training in maintaining sterile equipment or properly recordingpatient test results, and technicians in a nuclear power facilityreceive training in emergency shutdown and evacuation pro-cedures.

Like technical professionals, technicians are generally re-quired to take additional courses in safety hazard communica-tion. Safety training includes proper use, maintenance, and/orrepair of e :uipment; storage, handling, and disposal of hazard-ous materials; emergency procedures appropriate to the job(ranging from fire fighting to decontamination, first aid, andemergency evacuation procedures); personal safety (includingmaintaining a clean work area, using protective gear, and pro-per lifting to avoid back injuries, if appropriate); and safety inthe home and on trips.

Hazard communication includes the proper labeling, stor-age, handling, and disposal of hazardous or potentially hazard-ous materials found in the workplace, employer responsibilitiesfor hazard communication; posting of warning signs, identifica-tion of restricted areas; recognition ofharmful effects ofhazardousmaterials and symptoms exhibited by someone who encountersworkplace contamination; procedures for avoiding occupationalillnesses; and procedures to follow (and workers' rights) if an oc-cupational illness is contracted from hazardous materials.

Technicians holding supervisory positions also receivenontechnical supervisory training that is similar to that offeredto technical professionals.

The amount of time technicians spend in training varieswidely, according to the job held, the value that the companyplaces on training, and state and local certification (or licens-ing) requirements. Few statistics are available concerning thelength of training specifically for technicians. However, onesurvey did examine the amount of training provided to first-line supervisors (including some technicians) in 125 manufac-turing plants of varying sizes. The study showed courses rang-ing in length from 6 to 2,160 hours, with a median course lengthof 40 hours every six months (Harwood, 1978).

Data-Processing Technical Personnel. There are more than1.5 million data-processing workers in the United States more


than 300,000 computer systems analysts, almost 500,000 com-puter programmers, more than 300,000 operators, and roughly400,000 data-entry clerks. Of these, systems analysts are classi-fied as technical professionals, while programmers fall into ahazy category somewhere between professionals and technicians,depending on their responsibilities. Operators and data-entryclerks are not technical workers according to our definitionbecause they do not use theory in their work. They neither createnor manipulate the technology they use in their jobs. The com-puter is simply a job aide for them.

Data-processing personnel are a product of the informa-tion age. They build information systems and programs. Theyoperate computers, compile and structure data, and input datainto computers. Their primary product information may besold to external sources or used internally as the raw materialfor institutional efficiency. Data-processing technical workers,such as systems analysts and computer scientists, perform re-search, development, and design functions outside the line struc-ture of the institution. They are among the most highly educatedand trained occupational groups in the American work force(see Table 6). Both systems analysts and programmers get atleast as much education and training to qualify for their jobsas any of the major occupational categories shown in Table 1.Moreover, the proportion of systems analysts and programmerswho are upgraded compares with professionals in the most in-tensively upgraded occupations.

Systems analysts get substantial preemployment educa-tion, usually in colleges or universities, to prepare for their jobs.Yet they rely on their employers to provide formal and infor-mal training for upgrading their skills. Programmers use a bal-anced mix of schooling and employer-provided formal trainingand informal on-the-job training to qualify for their jobs and toupgrade their skills on the job.

With the miniaturization of computer capabilities and thespread of user-friendly technology, data-processing operationshave become more dispersed. Data-processing operations areserving multiple roles as research and development centers, linedepartments, and service and training providers for the rest ofthe institution. In order to cope with dispersion, some employers

Table 6. Sources of Qualifying and Upgrading Training: Data-Processing Technical Personnel.

Occupational Group


From Employer-BasedFrom Employer-Based

Total School Formal Informal Total School Formal Informal

Computer system analysts 94 70 27 45 64 16 37 25Computer programmers 91 64 1`.1, 41 61 25 27 24

Source: Carey, 1985.Note. Individual percentages can add up to more than the totals because some employees received training from more than

one kind of source.

35

The Special Role of Technical Workers

have established a new staff department, the information center,which serves as an intermediary between data-base managersand end users. The center provides "training, applications, andsupport to the computerized departments throughout a givencompany" (Kimmerling, 1986, p. 22). Even with user-friendlyprograms, communicating with the computer means learninga foreign language. Information centers perform a coordinationand training function, helping end users produce spreadsheetsand graphs as well as integrating hardware and applicationsbetween departments.

While advances in information-based technology havebeen the major source of changing skill requirements in manyAmerican jobs, data-processing occupations continue to be hard-est hit by the whirlwind of changing skill requirements. Thefact that data-processing employees are hit first and hardest bychanges in information technologies accounts for the high degreeof qualifying training and upgrading they receive, especiallythrough employer-provided training programs. Technologysimply moves too fast to wait for the schools to catch up.

Ironically, computer programs sometimes replace theircreators. Jobs that originate with new technology are eventuallysimplified. For example, general-solution business applicationssuch as VISICALC and LOTUS 1-2-3 are reducing the demandfor computer programmers. It is no longer necessary for pro-grammers to understand hardware architecture or design sepa-rate data structures for each application.

Interviews with a cross section of data-processing employ-ees indicate that data-processing technical personnel generallyhave college degrees or have attended structured programs attechnical schools to receive certification. Courses include man-aging information systems, computer design and analysis, audit-ing (of both systems and procedures, including securitymeasures), and programming in specific computer languages,such as BASIC, FORTRAN, and COBOL.

Armed with basic education or certification, the aspiringdata-processing worker usually enters the work force as a de-velopment specialist or a beginning programmer. Informationmanagers who manage other computer professionals, as well


as computer systems, report that although a college degree maybe essential for movement into management in this field, sup-port and mentoring from supervisors is often the most impor-tant ingredient for success on the job. This accounts for therelatively high level of informal on-the-job training among data-processing personnel shown in Table 6.

Skilled Trade (Blue-Collar) Techn; it Employees. The na-tion's blue-collar workers number almost 30 million and includecraft workers and operations personnel, construction workers,repair workers, precision production workers, extractive workers(those in the mining industry), machine operators, assemblyworkers, transportation workers, and laborers. According to thedefinition used here, only the 11.8 million precision production,craft, and extractive workers, mechanics and repairers, and somemachine operators and assembly workers qualify as technicalworkers. The remainder of the blue-collar workforce is the laborpool from which new technical workers evolve.

With the exception of extractive workers and machineoperators, roughly two-thirds of blue-collar technical workersget some kind of formal or informal preparation for their jobs,substantially less than the proportion of workers who get quali-fying training in technician and technical professional careers.Skilled trade workers tend to rely on informal training on thejob more than other occupations do for the qualifying trainingand upgrading they receive.

The purposes for training blue-collar technical workersvary considerably from those for training technical professionalsand technicians. Depending on the course and the individual,skilled trade training may be provided for any of the followingreasons: skill acquisition or update, certification or recertifica-tion, cross-training, or remediation of basic skills.

Skill acquisition training has traditionally been approachedin two ways:

1. Through apprenticeship programs that combine classroominstruction with formal, supervised on-the-job training fora specific period of time (some programs last three years

0 t,0 i


or more) before the apprentice is granted journeyman statusand permitted to work independently

2. Through coaching and other informal on-the-job programsin which a new employee learns a job by watching an expe-rienced employee perform a task, then practicing it untilhe or she can perform in the job without supervision

Many companies, especially those in high-tech industries,are beginning to formalize skill acquisition and update trainingfor skilled trade workers by using simulators and other advancedlearning technologies in an effort to increase control and uni-formity of training while reducing time lost from the job. Thistrend developing as a result of inconsistent training receivedthrough informal on-the-job training programs and increasedpressure on training and line personnel to increase quality andproductivity through better use of human resources.

When certification or licensing (or recertification or re-licensing) is the training goal, corporate training strategy oftenincludes a two-track (high-tech, low-tech) course. Workers inhigh-tech jobs are more likely to receive training from outsidesources. This is especially true for jobs requiring a specific num-ber of hours or continuing education units (CEUs) for recerti-fication or certification at a higher level of proficiency. Employeesin low-tech jobs are more likely to receive their recertificationtraining through in-house programs.

Cross-training is often provided on-site as a means of ex-panding the range of skills and knowledge within a work area.It is becoming more prevalent in companies requiring a versa-tile work force that is more responsive to changes in the work-place or industry.

Remediation is becoming a greater issue for employersfor the following reasons:

Labor shortages caused by the aging U.S. work force re-quire employers to hire individuals that formerly would havebeen considered unqualified.Advancing technologies now require higher levels of basicskills than were required for older, less complex t_ chnologies.


The United States is now operating in a global economythat is more competitive and shifting more rapidly thanever before.

As more companies respond to the need for remediation, manyare finding that their needs are best met by outside contractingto public and private sources.

Sources of training for blue-collar technical workers aremore diverse but better balanced than those for either technicalprofessionals or technicians. OEM training is a vital source whenthe training goal is skill acquisition or update on new processesor equipment. The rationale behind OEM training is that themanufacturer has a better understanding of equipment, pro-cesses, and procedures than any other source and is thereforemore qualified to conduct the training. Many companies pur-chase OEM training as a part of the acquisition cost of newequipment.

Local colleges, vocational schools, and trade associationsare major sources for certification and licensing training. Localcolleges, local school districts, and public sources, such as thoseresulting from the Job Training Partnership Act, are key pro-viders for remediation and skill acquisition.

Skilled trade workers pursue a tiered course of study thatis similar in structure to that proposed for technicians. The threetiers of their training include (1) a basic skills core, (2) a technicalcore, and (3) an applied technical core.

The basic skills core provides workers with an understand-ing of and an aptitude for mathematics, science, and commu-nication. The technical core provides an introduction to theprinciples involved in areas such as electricity, mechanics, com-puters, gauging and measurement, thermal systems, machining,and engines and power systems. With the exception of appren-ticeship programs, much of the training in the first two tierstakes place away from the job site, en the individual's time, andat the individual's expense. Many employers require their em-ployees to have completed courses through at least the secondtier prior to employment.

The applied technical core provides workers with an un-derstanding of how to anply the principles learned in the second

o


tier to a specific job. Courses in this tier place heavy emphasison developing and refining the skills required on the job. Themajority of instruction in this tier is devoted to demonstration,coaching, and practice.

As workers progress in skill level and experience, theycar. .ake additional courses intended to upgrade skills for newor advancing technologies. These courses can also be factoredinto a tiered structure but begin on a higher level. The emphasisthroughout the advanced-level courses is on skill enhancementrather than skill development.

Courses in all areas can deal with specific equipment orwith systems, depending on the nature of the job and the em-ployer's needs. (Cross-training and pay-for-knowledge programs,for example, are oriented more toward systems than specificequipment.)

In addition to job-specific training, skilled trade workersreceive the same courses in safety and hazard communicationthat are provided to technicians. The key difference, if any, isthat safety programs may be tailored to emphasize those safetyaspects and procedures that arc most important to specific jobs.

Foremen, lead workers, and other first-line supervisorsalso receive a core of nontechnical courses in supervisory skills.

As with technician training, the amount of time spent intraining blue-collar technical workers varies widely. For exam-ple, one hazard communication program reportedly takes as littleas three hours to complete, whereas the Aluminum Companyof America's apprenticeship program is 6,000 hours with anapproximate one-third/two-thirds split between classroom train-ing and on-the-job training. Overall, data remain sketchy forcraft personnel because despite the movement to formalize train-ing for this group, much training remains informal and is there-fore not reported as a training occurrence.

Evolution of the Tecl, ical Work Force

The future of technical jobs is closely linked to the pro-cess of technological change itsc:f. Technical skill requirementsare continuously being driven upward by new technology, andthe growth in technical jobs follows a similar pattern. As new

40


technology becomes a substitute for human labor, eliminatingtasks or reconfiguring them into fewer jobs that combine morehighly skilled labor with more machine cap; al, the evolutionof technical work assumes the form of a pyramid. Many labor-intensive and less productive jobs are restructured into a fewcapital- and knowledge-intensive jobs that are more productive.

Projections of occupational growth to the year 2000 fromthe Bureau of Labor Statistics (see Table 7) reflect that pyramidpattern by demonstrating the occupations in the economy thatwill undergo significant growth or decline. Depending on theeconomic scenario, the number of technical jobs is projectedto increase from 21 to 32 percent in the next twelve years. Thesame projections for jobs in the economy as a whole are con-siderably lower, ranging from 13 to 23 percent. Projected jobgrowth is especially notable among technical professionals, andas is true among all workers, education and training and develop-ment are the keys to securing these jobs. Even a casual reviewof the projections by the Bureau of Labor Statistics shown inTable 7 reveals the necessary escalatiori of skill and productivityas jobs evolve upward in the technical hierarchy.

Table 7. Employment Growth, 1986-2000.

OccupationLow 6:Jwth Path

(Percentage)High Growth Path

(Percentage)

Scientists + 37 + 52Engineers + 23 + 37Technicians + 31 + 43Craft + 12 + 23Mechanics and repairers +8 +19Precision manufacturilig workers 2 +9Machine operators 10 + 1Assemblers 12 0

Source: Carey, 1985.

Conclusion

In industries that require technical workers, there is a 1? geand growing investment in the continuous updating and upgrad-ing of technical skills. This investment is driven by necessity.

41


Technical workers have unique training needs that are definedby technical specialty, the emergence of new technology, andsafety or regulatory requirements.

Currently, technical workers receive the lion's share ofthe corporate training dollar. With rapidly changing technologyand competitive pressures to reduce cycle time, that investmentwill only grow.

4 9

CHAPTER2

How Technical TrainingSystems Work

There is growing consensus among employer organizations thattechnical training is absolutely critical for successful operationwithin an economic environment characterized by rapidly ad-vancing technology and complexity. However, although tech-nical training is generally considered to be most effective whenit is closely aligned with organizational operations and when itis an integrated part of the corporate strategic planning pro-cess, there is no consensus among employers as to the optimalstructure and organization for technical training. Disagreementsrevolve around how the technical training function should bestructured, under which corporate function or discipline it shouldbe organized, what degree of participation it should have inoverall corporate planning, and what relationship it should havewith line operations.

How an employer's technical training system is structuredand organized determines how well such training zupports theorganization's mission and objectives. Structure and organizationdetermine the degree of interaction among technical training,line operations, and human resource activities. They dictatewhether technical training will be a primary consideration assenior-level management formulates corporate strategies orwhether it will be relegated to the organizational fringes, withno real impact on strategic planning and decision making. De-pending upon how technical training is structured and organized,it can assist in improving specific operational areas that have a

24

How Technical Training Systems Work 25

direct impact on the entire organization, including productionor manufacturing. The right structure and organization can alsoenable technical training personnel to focus their resources onspecific activities that are key to an organization's success.

Careful attention to the technical training system and itsstructure and organization is paramount if it is to become a suc-cessful conduit for the skills and knowledge necessary for thetechnical work force to accomplish its mission and objectives.Ultimately, with the right stru:ture and organization, technicaltraining can play a dominant role in reducing a company'soperating costs, increasing productivity, reducing scrap andwaste, decreasing equipment downtime, decreasing employeeturnover, and reducing work-related accidents.

This chapter discusses technical training systems as theyhave developed and are in use today within employer organiza-tions in the United States. It also examines the factors that havecontributed to employers' decisions concerning what type oftechnical training system and structure is most appropriate fortheir organizations. Those factors include the nature of the prod-uct and industry, corporate culture, strategic goals, technicaltarget groups, and whether the company is a division or sub-sidiary of a larger organization (in which case, the type of techni-cal training system may be specified by the parent organization).

Technical Training Structure

Technical training structurehow the technical train-ing is controlled and organization where it is located havea great deal to do with how and how well-the function operates.No single technical training system is appropriate for all orga-nizations. Rather, technical training structure and organizationusually depend upon the characteristics of the employees to betrained, the nature of the industry and product or service, thestate of technology in the workplace, and the unique needs im-posed by specialized plant operations within the organization.Generally, there are three ways in which employers can struc-ture their technical training functions: (1) centrally, (2) decen-trally, or (3) a combination of the two.


Technical Training Structure: Centralized. Technical train-ing is considered centralized when the function is controlled and/or coordinated from a single location within the organization.When technical training is completely centralized, the companyheadquarters controls or coordinates the needs analysis, design,development, delivery, and evaluation of technical training forall employees throughout the organization. That is not to say,however, that control of technical training must be at the highestorganizational level to be considered centralized. For example,diverse subsidia:ies of a holding company generally have sepa-rate headquarters that oversee their respective operations witha great deal of autonomy. Usually each subsidiary's headquartersalso exercises control over its own technical training function,such a structure constitutes centralized training.

There are several advantages to having centralized con-trol of technical training, especially in organizations with similaroperations among various divisions and plants. In such cases,a centralized training structure avoids a duplication of effortamong similar facilities and reduces overall training costs throughthe consolidation of training resources such as staff, facilities,equipment, and materials. This is especially critical in certainhigh-techndogy organizations in which complex an expensivesimulators or computer-based systems are necessary for training.Training efforts within the organization's various operations canbe coordinated to optimize training resource usage and to enlargethe experience base from which training can be drawn. A cen-tralized training function also serves as a cross-pollination mech-anism through which employees from each facility learn fromthe experiences of others.

Centralization ensures that training throughout the orga-nization is uniform and that it supports corporate strategic goalsand special top-level priorities such as safety, quality, or em-ployee work teams. It also facilitates the introduction of newproduct or processing technologies that will have an impact onthe entire organization. Centralized control of technical trainingappears to be particularly beneficial in organizations that arehighly regulated, where a product must be produced to exactingstandards, or where safety is a critical factor of production.

45


Niagara Mohawk is an energy company with diversifiedinterests and resources in coal, nuclear energy, and natural gas.It is the chief supplier of electricity to 1.5 million customers fromLake Erie to New England. It also provides natural gas to 450,000customers in central, eastern, and northern New York State andprovides electricity and gas transmission services to other utilities.

Since Niagara Mohawk is a utility company involving apotentially dangerous work environment that includes nuclear-and fossil-fuel-generated power and natural gas transmission,it is under very strict regulation from the New York PublicUtilities Commission as well as the federal Nuclear RegulatoryCommission, the Occupational Safety and Health Administra-tion, and the Environmental Protection Agency. When NiagaraMohawk's management conducts its strategic planning and iden-tifies strategic goals, it considers its regulatory requirementsalong with other key issues, including providing quality andreliable service. To best achieve its corporate strategies, the com-pany has made technical training a priority and has establishedit as a centrally controlled operation. Niagara Mohawk's cor-porate training staff provides training at both headquarters andon-site facilities throughout the service territory. With centralizedcontrol, the company ensures that technical training is uniformin focus and quality, that it meets all regulatory requirements,and that it provides the skills necessary for employees to pro-vide safe, high-quality, reliable power and natural gas service.

As in the Niagara Mohawk example, a centrally controlledtechnical training function may have decentralized training de-livery. Under a pure central structure, corporate training pro-grams are designed at a central location. An organization maydetermine, however, that training can be accomplished moreeffectively if delivered by the central staffdecenirally at the indi-vidual plants. Nevertheless, organizations still view this as cen-tralized training because it is controlled and coordinated centrallyand delivered by the central training staff.

Technical Training Structure: Decentralized. Centralizedcontrol over technical training is not well suited to all organi-zations. Some companies have found a centralized structure to

4 C


be inefficient and cumbersome when unique products or pro-cesses create specialized missions among their facilities or operat-ing units. In such cases, a centralized structure is too far removedfrom line operations to be effective, and a decentralized structuremay be preferable.

Technical training systems are considered decentralizedwhen control over training functions is delegated to a lowerorganizational level. and there is no common point of coordina-tion among separate facilities or training entities. A decentral-ized structure works well in organizations producing a diversearray of products or using several different processing methodsor levels of technology. It is prevalent in organizations thathave divisions that manufacture products for entirely differentindustries. In such cases, each division is provided a great dealof autonomy over production and technical training. A decen-tralized structure places technical training closer to line opera-tions and allows it to develop closer relationships with theoperations personnel from whom technical workers must drawtheir expertise.

Federal Express, one of the largest transporters of over-night packages, exemplifies a decentralized technical trainingstructure within an organization having one product but involv-ing several unique processes. Essentially, the organization's workforce is involved in three distinctly different operations. flightoperations, which encompasses the operation of the company'sair fleet, ground operations, which involves the maintenanceof aircraft, select facilities, and package-handling equipment andaircraft interface (fueling, towing, deicing), and customer sup-port, which includes package handling, courier delivery, andcustomer service. Since each operation requires a different skilland knowledge base, Federal Express has decentralized its tech-nical training into three main functions corresponding to thethree types of operations. flight operations training, maintenanceand engineering training, and domestic ground operations train-ing. Decentralization allows each technical training function toestablish a training staff that designs, develops, and deliverstraining programs that are tailored to meet the specific needsof its operational area.

47


Siemens USA, a producer and marketer of electronics andelectrical equipment, offers an example of a decentralized tech-nical training structure within an organization with completelyautonomous divisions. The company's organization, which par-allels that of its parent, Siemens AG of Germany, consists ofthe following divisions: Siemens Communications Systems, aprovider of networking, switching, and transmission equipment;Siemens Medical Systems, a provider of medical electronic diag-nostic and therapeutic equipment and systems; Siemens Energyand Automation Systems, a provider of electrical and electronicequipment for the construction, industrial, and utility markets;Siemens Components, a producer of high-quality integratedcircuits; Siemens KWU, a producer of power generation equip-ment and nuclear fuels; and Siemens Information Systems, aprovider of advanced information products and systems andprivate communication systems.

Siemens USA has completely decentralized its operations,believing that each division is the most knowledgeable and bestequipped to make production and marketing decisions concern-ing its products. For the same reason, each division is responsiblefor its own technical training function. Within each division,the technical training structure ranges from centralized controland coordination, such as at Siemens Medical Systems (becauseof its highly complex and state-of-the-art medical equipment)to completely decentralized control, such as at Siemens Energyand Automation Systems (because of the unique products andprocesses of its operating departments). In fact, in the lattercase, each department has complete responsibility for its owntechnical training. Within Siemens USA, there is no coordina-tion of either operational or technical training activities amongthe divisions.

A decentralized structure is inefficient in organizationswhere some products or processes are similar within a divisionor department or among several facilities. It is also more difficultto link technical training to the mission and strategies of thehigh-level organization and for corporate management to pro-vide coordination. Decentralized structure is therefore more sus-ceptible to the influence of local management and more difficult


to control and monitor in terms of supporting the company'soverall strategies and other top-level priorities.

Technical Training Structure: Combination of Centralizedand Decentralized. Some companies have chosen to combine partsof both centralized and decentralized training structures. Train-ing is controlled or coordinated from a single point for specificsubject matter, phases of training, and/or target groups. All othertechnical training operations are decentralized to lower-levelorganizational entities to better address the company's products,processes, or procedures. This structure provides advantagesin that common courses or training for specific groups can becontrolled centrally while allowing local facilities the latitude theyrequire to meet the needs of unique processes, procedures, orequipment.

Many companies, for example, have chosen to centralizecontrol over design and development of safety and hazard com-munication courses, while allowing local plants to tailor thecourses and deliver them to meet their local needs. Others havecentralized all training for technical professionals in the beliefthat much of this training involves common, theoretical con-tent that can then be tailored to individual applications on thejob; yet the same companies have decentralized training for craftworkers so that plants can train those workers in the vagariesof local equipment.

Frito-Lay, Inc., a large producer of snack foods, is oneexample of an organization with a combination of centralizedand decentralized technical training within the five phases oftraining. All technical training is designed, developed, and ad-ministered centrally by a training staff located at the company'sheadquarters. Frito-Lay's forty individual plants have on-sitetraining staffs that deliver the training that is designed and de-livered by members of the central staff. Although the centraland plant training staffs work together, there is no direct orga-nizational link between the two. By combining elements of boththe centralized and decentralized training structures, Frito-Layachieves the benefits of both systems. Central design and devel-opment ensures that all corporate goals and special programsare adequately supported in the training. It increases efficiency

49


through the consolidation of all design and development activitieswithin a single training staff. Decentralized delivery allows indi-vidual plants to customize courses in response to specific require-ments and is consistent with Frito-Lay's Self-Reliance Program,which promotes increased autonomy at the plants. Decentralizedtraining delivery also increases the amount of hands-on training,while at the same time reducing the amount of time requiredaway from the job for training.

Polaroid, a designer, manufacturer, and marketer ofinstant-image products, exemplifies an organization with acombination of centralized and decentralized technical train-ing among its target groups. Technical training for technicalprofessionals and technicians is designed, developed, and de-livered centrally at the company's headquarters facility. Cen-tralized training is considered best for these target groups because(1) the subject matter involves the latest product and processtechnologies, which require rapid dissemination throughout theorganization, and (2) the subject matter is often not specific toany one plant or process. Polaroid's training for skilled tradeworkers is mostly decentralized, however, because their trainingis primarily plant-specific. Although these target groups aretrained under different structures, training for each group isconsidered equally important and receives equal managementsupport and funding.

Despite the apparent advantages ofa combined structure,a major disadvantage is the difficulty of coordination betweenheadquarters and local plants. Of the training managers inter-viewed, several indicated that it was 'difficult to determine thedividing line between centralized and decentralizes', training.In such cases, the managers stated that there was a tendencyfor local facilities to act independently and not take advantageof course offerings and expertise available through the centraltraining staff. Most managers stressed the neect for some degreeof coordination between central training operatiuns anu indi-vidual training units at local sites.

Trends in Training Structure. Despite a large degree ofdecentralization still found in technical training, there appearsto be a clear trend toward centralizing control over the design

50


and development of technical courses. Only delivery appearsto be remaining truly decentralized, and this occurs primarilywith technicians and craft workers. Of the thirty-three trainingmanagers interviewed for our study, eighteen indicated eitherthat the technical training function is now centrally controlledand/or coordinated or that it is in the process of being reposi-tioned to centralize control or coordination for at least a por-tion of technical training. This appears to be the case regardlessof economic sector (see Table 8). Moreover, in a 1987 surveyof companies, the Work in America Institute found that there:s a trend toward centralizing control over the training functiongenerally as a means of providing, brokering, and/or maintain-ing quality control over training programs.

Table 8. Breakdown of Study Participants by Structure.

Structure

Sector

Manufacturing Service Total°

Centralized' 12 8 20Decentralized 12 4 16

'Or repositioning for centralized control and/or coordination.°Some companies are counted twice because they engage in both manu-

facturing and service.

Organization of Technical Training

A review of corporate organizational charts reveals thatthere are several ways to position technical training within anorganization. The most prevalent methods are to position itunder human resources or personnel or to integrate it withinline operations, such as manufacturing or production. A fewcompanies, primarily those using a combination of centralizedand decentralized technical training, have positioned the cen-tralized portion beneath human resources and the decentralizedportion within plant line operations. In rare situations, technicaltraining is positioned as an autonomous function, not directlylinked to other corporate functions. In any case, the exact posi-tion of technical training within the organization depends on

51


the corporate mission and the perceived role of training in thatmission.

One of the most common locations of technical trainingin corporate hierarchies is within the personnel or human re-source function. Companies with this type of organization believethat it facilitates the coordination of technical training with othertypes of training and human resource functions. This is especiallyimportant in companies that use technical training as a basisfor promotion or compensation. Also, since many personnel andhuman resource functions are already linked to operationalstrategies, placing technical training under those functions linksit more closely to the strategies. This enhances training's abilityto manage and monitor outcomes in terms of their relationshipto the corporate mission and strategies.

Despite these advantages, however, some companies be-lieve that placing technical training in personnel or human re-ources leaves it too far from line operations and hampers itsability to meet the company's operational needs. They also assertthat placement in personnel or human resources allows teclui:,..21training to be easily influenced or controlled by people with littleor no understanding of it. Companies desiring a closer link tothe line and/or desiring control by experienced line personnelfrequently choose to place technical training within operations.These companies find it easier to evaluate outcomes in termsof specific target groups.

Carrier Corporation is the world's leading many 'acturerof heating, ventilation, and air-conditioning equipment. Cen-tralized for the analysis, design, development, and delivery oftechnical training, Carrier's technit,a1 training function is locatedwithin "industrial relations" under "manufacturing." This orga-nization provides the advantage of working closely with line per-sonnel to design, develop, and deliver training that meets theneeds of its apprentice and technical supervisory programs aswell as its cross-training, retraining, and new technology train-ing and remediation programs.

But organizing technical training under line operations canlead to difficulties in linking training to a company's operatingstrategies and to the tendency for training to be overshadowedby pressing production needs. Carrier has tackled the problem


by including the training manager on the corporate planningcouncil. The training manager is therefore aware of all plansfor expansion, reduction, or other operational changes well inadvance of their initiation. Thus the manager has adequate timeto develop training plans and courses that directly support opera-tional goals. Carrier uses one-year and five-year plans that in-clude new equipment, personnel, and marketing planningstrategies. Suggestions anade by the training department canalso be incorporated in the planning process and implementedduring execution of the plans. As a result, all training conductedat Carrier directly supports the company's strategic goals.

Staffing Technical Training

Internal Staffing. Of equal importance to structure andorganization are issues surrounding the staffing of the technicaltraining function. All organizations surveyed for this book mettheir staffing needs by hiring and using one or a combinationof the following:

Individuals with adult learning backgroundsIndividuals with technical backgroundsIndividuals with technical and adult learning backgroundsTeams comprised of one individual with a technicalbackground and one with an adult learning background

Companies that hire individuals with adult learning backgroundsare seeking the expertise these people bring in terms of train-ing context. Their ability to design programs fog !earning transfermakes adult learning experts valuable to many organizations.One drawback to using adult learning experts, however, is thatmost do not have a thorough understanding of technical pro-cesses and procedures for which they must design training. Theirlack of expertise makes them less able to design courses withhighly technical content and less credible when presenting train-ing to participants who are more knowledgeable than they inthe subject area. Also, in companies in which training is a rota-tional duty rather than a career track, dedicated trainers are

Jr)


less'flexible and therefore less desirable than technical personnelbecause they cannot rotate into line positions.

A more common approach to staffing is to use people whoare experienced in operations, that is, individuals with technicalbackgrounds. Companies using this approach believe that staffingtechnical training with experienced technical personnel is prefer-able for two reasons. First, technical personnel have a thoroughunderstanding of the subject matter and can reduce the amountof time required for design and development. Second, their expe-rience enables them to relate better to the needs of the participantsduring delivery. However, subject matter expert3 require train-;ng in adult learning theory and stand-up training techniquesas a minimum before they can adequately present training. Ifthey are to design training as well, they require considerablymore background in adult learning and design techniques. An-other drawback to developing line personnel as trainers is thatit can take well over a year to teach them to develop and con-duct training, an experienced line personnel often do not wantto make that type of commitment.

Because of the extensive investment involved in trainingoperations personnel to staff the technical training function,selection procedures are critical for Niagara Mohawk. The com-pany has addressed these issues by using a combination of theroles and competencies described in ASTD's Modelsfor Excellence(1983) and the well-known Kepner Trego selection package asa basis for determining job descriptions for selection. After post-ing a vacancy, the training director screens applications to reviewthe applicants' experience levels in the desired content area, thenreviews them again to narrow the number of candidates accord-ing to weighted criteria developed as part of the job description.Those identified as finalists present exercises in front of a juryof incumbents from the training staff. Final selection is basedon the individual's technical expertise, communication skills,personality, and attitude.

After selection, the new instructor begins an intense train-the-trainer process that starts immediately after his or her selec-tion and ends after one year of employment in training. Thistraining process includes four steps. (1) a train-the-trainer session

t.1


(which may be offered in-house or through Cnrnell University),(2) a teaming experience with an experienced training employeewho coaches the new instructor through several training ses-sions, (3) an instructor improvement evaluation to identify majorstrengths and weaknesses, ar.d (4) an annual performance evalu-ation that is given one year from the date the instructor beganin the position (not from the date of hire). Only after one yearas an instructor is the individual eligible for promotion, andonly then can he or she begin to design or develop courses.

Most training managers interviewed for this book statedthat their preference for a training staff member is an individualwith both a technical background and an adult learning background.However, most managers also agreed that such a combinationis difficult to find and equally difficult to retain.

An approach used by several companies is a team approachin which an individual with an adult learning background workswith a subject matter expert (and sometimes a media or com-puter expert). Teaming permits both technical expertise andadult learning theory to be incorporated in the training. Thissystem may be the most efficient and cost-effective approach tostaffing because it permits part-time or rotating use of line per-sonnel on an as-needed basis. It also allows adult learning spe-cialists to provide an appropriate context for course content. Withthis approach, delivery is usually provided by line personnel.

Northern Telecom Inc. is a wholly owned U.S. subsidiaryof Canadian-based Northern Telecom, Ltd., the world's largestsupplier of information management systems. Technical coursesprovided by Northern Telecom's Integrated Network SystemsDivision, which produces telecommunications switching equip-ment, are developed by means of a three-person approach. Acourse "prime designate" is an individual with an operationsbackground who is responsible for the overall course content.An individual with adult learning expertise is responsible fordeveloping an appropriate context for the learning populations,and a media specialist develops all accompanying media. Thetraining director at Northern Telecom believes tht the teamapproach is the most efficient and cost-effective means of develop-ing training that not only transfers to the job but keeps abreast

55


of the rapidly changing technology required by the telecom-munications industry.

External Training Providers. Regardless of staffing ar-rangements, most companies have indicated that at some point,they have relied on outside suppliers to meet their training needs.Though the supplier selected depends heavily on a company'sstaffing level, the type of program required, and the target groupfor which the training is intended, companies turn to three majorsources of outside providers:

1. Colleges, universities, and professional associations2. Original equipment manufacturers3. Other vendors, including consultants and producers of com-

mercially available training packages

Colleges, universities, and professional associations area major source of outside training for technical professionals,especially scientists and engineers. Because most training fortechnical professionals is intended to update skills and knowledgeabout advancing or new technologies but leave the exact applica-tion of the technology to the individual on the job, programsoffered by colleges, universities, and professional associationsare good alternatives to developing in-house curricula in non-proprietary subjects for technical professionals.

Colleges and universities are also a frequent source of sup-plemental upgrading training for technicians, who require a mixof theory and application to upgrade their job skills.

Skilled trade workers are more likely to attend trainingsponsored by local colleges, vocational-technical schools, andprofessional groups. This is especially true for jobs requiringa specific number of hours or continuing education units forrecertification or certification at a higher level of proficiency.

OEMs are another widely used outside training provider,especially when the training goal is skill acquisition on a newsystem, process, or procedure. Many companies purchase OEMtraining as part of the acquisition cost of new equipment. Forexample, Carrier Corporation absorbs OEM and other training

)


costs for equipment operators and maintenance personnel aspart of the cost of nzw equipment.

A third major outside source for employee training is ven-dors, including consultants and producers of commercially avail-able training packages. Despite the existence of an in-housetechnical training staff, Ford Motor Company depends on out-side suppliers for much of its training. Ford's internal trainingstaff members act primarily as project managers for courses andprograms that consultants and/or local colleges and universitieshave provided. The use of external providers will be exploredmore fully in Chapter Three.

Technical Training and Corporate Strategies

The current trend toward an increasingly close alliancebetween technical training and line operations has resulted fromthe active role of technical training in supporting corporationsas they refocused their strategies and restructured in responseto a changing U.S. economic environment. This active role hasenhanced technical training's credibility and reputation as wellas elevated its prominence among other corporate functions.Training has also undergone its own transformation, becomingmore centralized in order to support corporate strategies andmissions more effectively.

The dramatic transformation of the U.S. corporate operat-ing environment has caused many of the changes in corporateorganizations. Almost all industries and companies have beenaffected to some extent by rapidly changing technologies. Th, ,.

products, services, and processes must be updated more fiquently to keep abreast of proliferating technologies and innol,tions. In many cases, corporate structures and operations ha%..become completely driven by technology. Organizations havealso becc,me subject to fierce competition as the U.S. economyhas become increasingly global. U.S. companies have beenforced to accelerate product development cycles and imposegreater efficiencies to compete successfully against the lower-wage, high-growth, off-shore economies. At the same time, agrowing consumer awareness has increased the demand for


improved product quality, reliability, and styling. This issuehas become an almost universal corporate priority. Escalatingcosts caused by greater operating complexities, product litiga-tion, expanding safety and environmental regulations, and tre-mendous increases in employee benefit cc sts have generatedadditional obstacles for U.S. companies. Tcgether, these factorshave a synergistic relationship that has prompted most organi-zations to reexamine their operations, products, and missions.

During the process of adapting missions, operations, andproducts to changing economic conditions, companies have beendeveloping new attitudes toward the work force. Increasingly,they view employees as a valuable and renewable resource thatis critical to operations. Regardless of the degree of technologyinvolved in their operations, most organizations are discover-ing that a skilled and motivated work force that is dedicateato excellence is essential to surmounting the obstacles in today'seconomy. They are also discovering that employees are mosteffective when given greater responsibility and increased author-ity over their work assignments.

Whether an organization responds to these environmentalfactors by streamlining or modifying its structure, modernizingor replacing its plat t and equipment, or improving or expandingits product lines, technical training is playing an ever-increasingrole in the execution of the changes. It has been flexible in adapt-ing to the diversity of product and process technologies and tothe needs of a heterogeneous technical work force with a varietyof organizational structures, staff expertise, training methodolo-gies, and subject matter.

In most organizations, technical training supports mostor all corporate strategic goals. It supports new product or man-ufacturing technologies by providing workers with the requisiteskills and knowledge levels. These same skills boost productivityand efficiency and improve product quality. A skilled work forcealso reduces operating costs by minimizing waste, operating de-ficiencies, manufacturing variances, and equipment downtime.In addition, technical training promotes safety when its curricula?actress hazardous materials and processes. Moreover, it sup-ports, although less directly, strategic goals such as enhancing

1^ r.'tJ C.)


shareholder value by promoting increased productivity andgreater efficiencies.

The visibility and contribution of technical training tocorporate operations vary significantly, depending upon thespecific organization and perceived value of the function. Someorganizations, like Northern Telecom, believe that training iscrucial enough to be integrated into ling operations at one ofits plants,

Northern Telecom's Rancho Bernardo plant, which pro-duces application-specific integrated circuit components, had notbeen operating at an optimal level of productivity or productquality. Following an examination of plant operations, the plantmanagers decided to restructure the plant under the new strategicgoal of becoming the premier producer of semiconductors. Themanagers opted for work teams, with each responsible for aspecific workstation within a primary plant activity: fabrication,testing, or assembly. Each work team was given the authorityto obtain all resources necessary to accomplish any task, goal,or objective. Work teams were also responsible for selecting newemployees for the team and for providing a work team orienta-tion program.

From the start, the plant managers recognized the abso-lute necessity for a technical training system that provided ad-vanced skills and knowledge, as well as the equipment andprocedure training required for each team member to operate,troubleshoot, and maintain each piece of equipment in the team'sworkstation. Additionally, each team member had to keepabreast of the latest product and manufacturing technologiesaffecting the workstation. To obtain the maximum flexibilityand understanding of each work team's unique training require-ments, technical training was included as one of the work team'sfunctional responsibilities. Each team became responsible foridentifying and analyzing its training needs, structuring a train-ing program, selecting and developing a team trainer, and con-ducting the training.

At the Rancho Bernardo plant, technical training has beencompletely incorporated into the ....irk team line operations. Thisis considered the most effective way of supporting plant opera-tions by providing a highly skilled work force, which in turn


supports the plant's main strategy of becoming the preeminentsemiconductor producer. Such a structure enables training topinpoint operational discrepancies accurately and to respondto those problems with remedial training almost immediately.The structure also ensures that new product and process tech-nologies are disseminated more quickly and that related train-ing support is established concurrently.

In some organizations, the technical training function isrepresented by someone who actively participates in the cor-porate-level strategic planning process. The extent of involve-ment depends on the individual company and ranges from actingas an observer of the strategic planning proceedings to beingan active proponent who ensures that all strategic goals includea training perspective.

At Frito-Lay, Inc., technical training is directly involvedin the corporate strategic planning process. The company's seniormanagement periodically convenes planning and strategy ses-sions to establish strategic goals for the next three to five years.Generally, the goals encompass overall corporate direction andmore specific manufacturing and production objectives. A repre-sentative from the company's central technical training func-tion attends these sessions and provides input conctining thepotential impact of the proposed goals and objectives on bothtraining and the work force. Although not directly linked withindividual plant trainers, the central training staff maintains acontinual interface with site trainers to ensure that their feed-back receives proper consideration in the strategy planning pro-cess. Once specific goals and objectives receive approval andare implemented, the central technical training function estab-lishes training goals and objectives that correspond to the cor-porate strategic goals and serve as guidelines for future trainingefforts.

Some organizations, such as Motorola, have elected toestablish a technical training operation that is completely linkedto corporate strategies. The Motorola Training and EducationCenter is a centrally controlled employee training and educa-tion organization that is charged with improving individual andorganizational performance and productivity throughout the or-ganization. The center accomplishes its training at a central

60


state-of-the-art facility, located near corporate headqurxters andat five regional facilities, three of which are located in the UnitedStates and two overseas. As mandated by the center's missionstatement, all training provided by the center supports or ad-dresses current corporate strategic goals, such as product quality,inventory reduction, and customer service.

The job of identifying or updating corporate strategic goalsand the associated training requirements is the responsibilityof several senior-level committees. First, the MotorolaTrain-ing and Education Center's advisory board, consisting of thecompany's senior executives, including its chairman, meets twicea year to update and chart the corporate strategic plan, deter-mine a general training direction to support the plan, anddevelop a general budget for each of five broad functional areas.Next, the Motorola Training and Education Center's five func-tional advisory councils, representing engineering, manufactur-ing/materials, marketing, personnel, and sales, meet to translatethe executive advisory board's training guidance into specificplans for each of their respective functional areas. Each func-tional advisory council meets quarterly to determine and prior-itize specific training requirements for its area. Finally, theMotorola Training and Education Center designs and developstra;ning programs and courses based on the specific guidelinesand parameters provided by the five councils.

Organizations that involve technical training in the stra-tegic planning process do so in the belief that the corporationis better served overall by the training function. In times ofbudgetary constraints and limited resources, it is also the mosteffective means for targeting training efforts toward specificoperational problems or corporate opportunities. Finally, by in-volving technical training in the strategic planning process, train-ing personnel become aware of operational problems or newequipment purchases sooner and are able to respond more quicklywith the most appropriate training programs.

Conclusion

As workplace technologies change and U.S. businessescompete more and more in a global economy, corporate mana-


gers are becoming more aggressive in linking their technicaltraining requirements to the corporate strategic goals. In thiseffort, they are carefully weighing the organization's needs sothat technical training can be structured and organized to con-tribute more actively to meeting corporate strategies.

Technical training managers within organizations are alsocarefully identifying the specific needs of each target popula-tion within organizations to ensure that the training providedis appropriate, timely, and consistent with the companies' overallbusiness goals.

6

(

CHAPTER3

How Technical TrainingIs Provided

In today's world of work, the metalsmith is now a metallurgicaltechnician; the engineer's aide is a technologist; and the latheoperator of old monitors and programs machining cells that con-tain an array of computer-controlled machine tools and roboticmaterial-handling devices. Technological changes are drivingthe evolution of occupations, compelling employees to learn newskills in order to adapt to new roles and work in new ways. Thismeans that entry-level workers must come to a prospectiveemployer with an increasingly sophisticated repertoire of skills.And veteran employees must often scramble to upgrade theirskills just to keep their jobs.

Technological changes are also shifting the employerperspective on technical training. While in the past most em-ployers recognized the importance of technical training, theyoften had the luxury of providing or facilitating their workers'training over an extended time period. Now, however, today'sinnovation is tomorrow's outdated equipment. To stay com-petitive, employers are discovering that they must keep theirtechnical work force up-to-date because there is much to winbut still more to lose if their workers do not have the necessarytechnical skills. Productivity and a healthy bottom line are atrisk if a technical work force cannot acquire the skills it needsin a timely manner.

The good news is that there are many who can assist inthe design, development, and delivery of up-to-date skills. Often

44

63

How Technical Training Is Provided 45

employers themselves have the in-house capability to providetraining. Even when they do not, however, many et -r train-ing providers are available to come to their aid.

Employer investment in overall training is large. About$210 billion is spent annually on formal and informal training.Research conducted for this book, as well as the work of others,including the Bureau of Labor Statistics, shows that about 30percent of that $210 billion is spent on technical training.

Because employers cannot provide all the necessary train-ing with an in-house staff, they have formed cooperative N,eutureswith training providers. Such cooperation between employersand outside providers is critical for ensuring that the qualityof technical training is high and that the delivery of technicaltraining is available, efficient, and timely. By working together,employers and outside providers of training can provide a rapidlychanging work force with the skills and knowledge required tokeep America's competitive position strong. Cooperation doesnot always come easily, however, and employers and outsideproviders must work to forge meaningful partnerships that areflexible, efficient, and innovative.

To improve the quality and efficiency of technical train-ing, employers are faced with several challenges:

They must understand how and when technical workers gettheir training.They must know who the providers of technical training are.They must learn how to interact with those providers to im-prove the quality, efficiency, and delivery of training.

This chapter attempts to help employers meet those challenges.

Technical Training Patterns

There are discernible patterns in the technical trainingthat each target group receives. The findings discussed in thischapter were calculated by using data from Bureau of LaborStatistics Bulletin #2226 by Max Carey (Carey, 1985) as a base.It is possible to trace the amount of training that technical pro-


fessionals, technicians, and skilled trade workers receive andthe institutions that most often provide the training. Moreover,each target group receives its qualifying training and upgradingtraining in distinctive patterns that result from differences inskill requirements, skills levels, and certification or licensing re-quirements.

Nevertheless, some generalities are evident. All workerstend to receive more training to qualify for their jobs than theydo to upgrade their skills. For technical workers in particular,between 67 and 79 percent of technical professionals and techni-cians receive more qualifying training than upgrading training.Approximately 50 to 75 percent of technical professionals andtechnicians participate in upgrading training, but fewer than50 percent of skilled trade workers participate in skill upgrading.

Rapid shifts in technology and processes are influencingthe patterns of technical training, making them less predictable;they are compressing the training experience so that it is shorterbut occurs more frequently. All this poses resource allocationproblems for employers. However, if employers can recognizenew training patterns for target groups and identify the mostcommon providers of technical training, they can better deter-mine how and when to establish effective training partnershipswith external training suppliers.

Technical Professionals. Ninety-four percent of technicalprofessionals require training to qualify for their positions. Therequirements for preemployment training and credentials forthis level of employee make four-year colleges and universitiesthe most frequent suppliers of qualifying training for technicalprofessionals; 63 percent of this group use four-year colleges anduniversities to qualify for their jobs. The second most commonsource of qualifying training for technical professionals is un-structured on-the-job training, which is used by 22 percent oftechnical professionals. These people rarely use formal employer-based training programs, two-year colleges and technical in-stitutes, or the armed forces, to qualify for their positions.

Sixty percent of technical professionals require upgradingtraining to keep pace with rapid changes in their fields. Chang-

W-u


ing job requirements caused by advances in technology and theneed to maintain professional certification or other credentialsnecessitate such training.

Unlike qualifying training, where one source of trainingis dominant, more sources are responsale for the skill upgradingof technical professionals. Formal employer-based training pro-grams are the most common source of skill upgrading, providingtraining to 23 percent of all technical professionals. Unstruc-tured on-the-job training programs provide 17 percent of thisgroup with skill upgrading. Four-year colleges and universitiesprovide 16 percent of the skill upgrading these employees need,

Technicians. Eighty-five percent of technicians requiretraining to qualify for their positions. Because of certificationor licensing demands, four-year colleges and universities are themost frequent training sources, being used 26 percent of thetime. Unstructured on-the-job training programs are used nearlyas frequently-22 percent of the time. Qualifying training fortechnicians is rarely provided by postsecondary vocational, trade,and business schools; formal employer-based training programs;or the armed forces.

Fifty-two percent of technicians require upgrading trainingfor the same reasons that technical professionals do: to main-tain certification and to keep skills and knowledge current withchanging technologies. Employer-based training programs arethe most common source of skill upgrading for technicians andare used almost twice as frequently as all other sources com-bined. Seventeen percent of technicians receive upgrading train-ing throus% unstructured on-0- .;-job training programs and 16percent receive it through formal employer-based training pro-grams.

Skilled Trade (Blue-Collar) Workers. Sixty-six percent ofall skilled trade workers require training to qualify for their posi-tions. Because the content of the jobs of these workers is morepractical and less theoretical than the jobs of technical profes-sionals and technicians, skilled trade workers receive their train-ing from different sources. These workers receive 39 percent of

ci;


their qualifying training from unstructured on-the-job trainingprograms. Skilled trade workers do not often use four-year col-leges and universities for their qualifying training; only 2 per-cent of their qualifying training comes from those educationalinstitutions. Similarly, other sources of technical training arerarely used by skilled trade workers to qualify for their jobs.

Skilled trade workers rely predominantly on employer-based training programs for their skill upgrading. Twenty per-cent of these employees use formal employer-based training pro-grams, and 17 percent use unstructured on-the-job training fortheir skill upgrading.

Providers of Technical Training: A Brief Overview

All workers acquire their skills from a variety of trainingsources. The average worker uses an average of 1.3 sources oftraining to qualify for a job and to upgrade skills. Employers,educational institutions (including public and private two- andfour-year schools), professional associations, original equipmentmanufacturers, other employer institutions, community-basedorganizations, vendors and consultants, and the armed forcesare among the many providers that qualify entry-level workersfor new technical jobs and upgrade the technical skills of em-ployees currently in the work force.

Employer-based training is by far the most commonsource for technical workers. Formal and informal employer-based training is accessed for skills upgrading by about one-thirdof technical workers, twice the number that use schools. Alltechnical workers receive nearly equal amounts of formal andinformal employer-based training, with professionals receivingslightly more formal training and skilled trade workers receiv-ing slightly more informal training.

Second only to employers, educational institutions are themost common provider of te,..nical training. Virtually all tech-nical workers who use schools for skill upgrading attend four-year colleges or two-year community colleges and technical in-stitutes. Those who rely the most on school-based education arenatural scientists and employees I.. health-related occupations

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(88 to 96 percent), while between 50 and 75 percent of tech-nicians and engineers rely on school-based education.

The remainder of this section describes employer-basedtraining and educational and other institutions that providetraining to technical workers and the technical populations theymost often serve.

Employer-Provided Training

Employers are the largest provider of training for thetechnical work force. Overall, employer-provided training ac-counts for 43 percent of qualifying training and 38 percent ofupgrading training for technical workers.

Although not the major source of qualifying training fortechnical professionals, formal and informal employer-providedtraining accounts for 37 percent of qualifying and 40 percentof upgrading training for this group.

Employer institutions ph.) an even greater role in thetraining of technicians. Through both formal and informal pro-grams, they provide qualifying training to 46 percent and up-grading training to 37 percent of this group.

Employers play their largest role in providing qualifyingtraining to craft workers. Through their formal and informaltraining programs, employers provide qualifying training to 60percent of craft workers. One way that employers provide trainingto skilled trade workers is through apprenticeship training pro-grams. Since the establishment of a formalized registration systemfor apprenticeship trainmg via the National Apprenticeship Actof 1937, more than 5 million youths have been trained throughapprenticeships (AFL-CIO, 1988). An unknown number havebeen trained through nonregistered apprenticeship programs.

Compared to other industrialized nations, the UnitedStates trains the fewest number of youths through formalizedand registered apprenticeship programs (Glover, 1986). As aresult, many U.S. opinion leaders advocate that apprenticeship,with its combination of on-the-job training and off-the-job for-mal instruction, be preserved, strengthened, and extended tonew occupations (AFL-CIO, 1988).


While employers continue to provide significant amountsof technical training with in-house resources, they are increas-ingly utilizing outside providers. This is especially apparent inthe initial staffing of technical positions. More and more, employ-ers are recruiting qualified workers prepared by educational in-stitutions for entry-level technical positions rather than relyingon on-the-job training or the variances of the internal labormarket to ready workers for new positions. Once technicalworkers are on board, the challenge of upgrading skills is in-creasingly a shared one, with educational providers and employ-ers joining together to keep workers' technical skills current.

External Training Providers

Training providers that are external to employer institu-tions have traditionally played a major role as a source of bothqualifying and upgrading training for technical workers: theyare responsible for 66 percent of qualifying training and 25 per-cent of skill upgrading for the technical work force. Moreover,employers are expected to turn increasingly to outside providersbecause they are a cost-effective means of providing training.

External training providers include educational institu-tions (four-year colleges and universities; community, technical,and junior colleges; and vocational, trade, and business schools),professional societies, original equipment manufacturers (OEMs),other employer institutions, community-based organizations,vendors and consultants, and the armed forces. Some of the pro-viders may be accessed by individuals without the interventionof an employer institution; and those providers may operate in-dependently of an employer. Workers can only access some pro-viders, such as OEMs, through employer institutions. Otherproviders, especially educational institutions, may operate in-dependently of or in cooperation with employer institutions.

The role of external providers is expected to grow overthe next decade as employers struggle to deal with labor marketchanges. The current labor pool is marked by a shrinkingnumber of eighteen- to twenty-four-year-olds and by millionsof potential employees who lack technical and basic skills. Thirty

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percent of the growing labor pool is poor, unemployed, andunemployable (Butler, 1988). Without basic and technical skillstraining, these potential employees will be unable to supplementthe current technical work force. External providers will be calledupon to provide much of the basic training needed to ready thesepotential employees.

Educational Institutions. The United States supports 156universities and 1,851 colleges with a combined enrollment ofalmost 8 million students. These institutions spend almost $80billion annually, or roughly $13,000 per student. Four-year col-leges and universities provide more qualifying and upgrading train-ing for American workers than all other postsecondaryeducational institutions combined.

Often, technical training is offered through a -chool oftechnology within the university. In some cases, technical train-ing is located in a division or department within the college ofengineering or science.

The predominant focus of technical training programs infour-year colleges and universities is to provide qualifying trainingto technical professionals (including managers and professionalspecialists such as teachers, scientists, engineers, and doctors)and technicians (for fields such as manufacturing, construction,energy ger _ration, communication, electronics, aviation, andmedicine). Many institutions also have continuing educationprograms to provide advanced training and upgrading to thesetechnical professionals and technicians. Four-year colleges anduniversities rarely train skilled trade workers, athough there areseveral programs that train instructors, administrators, research-ers, and others who are responsible for organizing and operatinghigh-quality programs for training skilled trade workers.

Just over 4 million technical workers received qualifyingtraining from colleges and universities in 1985, and 1.2 millionreceived upgrading. Technical occupations that are particularlyreliant on colleges and universities for qualifying training includedentists (97 percent), biologists (94 percent), and physicians (93percent). Technical occupations that are particularly reliant oncolleges and universities for skill upgrading include speech thera-

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gists (48 percent), physicians (27 percent), and aerospace engi-neers (24 percent).

Community/junior colleges and technical institutes are part ofthe postsecondary occupational education system, which is theprimary system for preparing high school graduates not goingon to four-year colleges for nonsupervisory technical careers astechnicians and skilled trade workers.

Students at community colleges and technical institutestend to be older, poorer, and in greater need of basic skills train-ing than are four-year college students. These two-year institu-tions are especially attractive to employed adults (a largepercentage of the full- and part-time student body at these in-stitutions is employed while attending classes) because of theiraccessibility and flexible class scheduling.

Historically, two-year community colleges and technicalinstitutes have provided programs that prepare technician grad-uates for transfer to four-year colleges and universities or im-mediate entry into the labor force. In recent years, however,changes in technology, competition, and productivity have ex-panded this role, driving these institutions to expand their pro-grams to address the training and retraining needs of displacedworkers and other employees whose skills must be upgraded.

Community colleges and technical institutes are frequentproviders of qualifying and upgrading training for technicalworkers, providing qualifying training to 1.6 million of themin 1985. In the same year, 760,000 technical workers receivedupgrading training from these sources.

Technical occupations that are particularly reliant on com-munity colleges ai.d technical institutes for qualifying traininginclude inhalation therapists (46 percent), radiological techni-cians (39 percent), and dental hygienists (38 percent). Technicaloccupations that are particularly reliant on these institutions forskill upgrading include dental hygienists (13 percent), aerospaceengineers (12 percent), and drafters (11 percent).

Vocational, trade, and business schools are also part of thcpostsecondary occupational education system and include bothpublic and private institutions. Although these institutions tendto specialize in less technical fields than do two-year community


colleges and technical institutes, they are also an important pro-vider of training for skilled and semiskilled occupations. Thetraditional role of these institutions has been to prepare techni-cians and skilled trade workers for entry-level employment andapprenticeship programs or for more advanced postsecondaryprograms.

Vocational, trade, and business schools are noted formarketing their programs to adult learners. Private schools inthis category, in particular, are noted for their short occupa-tionally related programs and their flexible scheduling.

There is often a wide disparity in tuition and fees betweenpublic and private vocational, trade, and business schools. Also,because licensing requirements for these institutions vary amongthe states, there is a wide disparity in the quality of trainingthey provide.

Vocational, trade, and business schools provided quali-fying training for approximately 1.1 million technical workersand upgrading training for 300,000 technical workers in 1985.Technical occupations that are particularly reliant on public voca-tional, trade, and business schools for qualifying training includelicensed practical nurses (25 percent), data-processing equip-ment repairers (12 percent), and heating and air-conditioningmechanics (9 percent). Technical workers who tend to receivetheir skill upgrading from these institutions incluck millwrights(6 percent) and dietitians (4 permit).

Technical occupations that are particularly reliant onprivate vocational, trade, and business schools for qualifying train-ing include radiological technicians (19 percent), registerednurses (14 percent), and licensed practical nurses (12 percent).Technical workers who tend to receiv e their skill upgrading fromthese institutions include tool and die makers (6 percent) andhealth technicians (4 percent).

Military training accounts for the largest share ofgovern-ment training expenditures. In fiscal year 1989, $17.6 billionwas appropriated to provide 249,168 man-years of training topeople in all service branches (U.S. Department of Defense,1988). Job-related technical training in the military includes theareas of electronics, computers, and aircraft engine repair.


In addition to the basic and specialized training offeredby the military, each branch of service has cooperative arrange-ments with civilian schools to enable service personnel to earnhigh school diplomas or work toward college degrees. Amongthose occupations for which college credit can be earned are elec-tronic technicians, aerospace engineers, and industrial equip-ment repairers. Several credit-by-examination and many corre-spondence programs are also offered. Finally, the U.S. Army,Navy, and Marine Corps have registered apprenticeship pro-grams that allow enrollees to receive credit in civilian appren-ticeship programs for their service experience.

Technical occupations that are particularly reliant on thearmed forces for qualifying training include aircraft engine me-chanics (45 percent), data-processing equipment repairers (22percent), and repairers of electronic communication and indus-trial equipment (21 percent).

Many professional societies train technical workers (primarilytechnical professionals) through seminars, conferences, work-shops, and trade shows. Many training programs are providedas part of a certification process. These societies also set thetechnical standards that industry uses to manufauure products.

Professional societies and associations reach thousands oftechnical professionals through their extensive publications ontopics of technical interest. In addition, the staffs of professionalassociations are frequently very knowledgeable because they havethe academic background and practical experience necessary toserve the needs of their profession and members. Therefore, theyare usually good sources of current information about their fieldand its current needs and practices.

Seminars and workshops given by consultants and vendorsare another means ,f educating and retraining technical workers(again, primarily technical professionals). Such seminars orworkshops may be customized and presented at the employer'swork site for several employees, or an employee may attend apublic workshop offered by the vendor. Consultant and vendorprograms range from focusing on highly technical subjects toproviding skill upgrading in support areas such as computerlanguage training and software engineering. The marketplace


includes hundreds of consultants and vendors, including largenational and international firms, small firms, and individuals.

Community-based organizations (CBOs) are usually createdto serve a specific purpose (training, health maintenance, emer-gency assistance) or population (minorities, single mothers,children, youth). These organizations are nonprofit and oftenoperate on shoestring budgets, supported privately or throughfederal, state, or local funding. Many CBOs are committed todeveloping a skilled work force, usually targeting their trainingservices to those most in need: minorities, youth, and dislocatedworkers. The training that CBOs provide is almost alwayspreemployment training; after the trainees have completed theirtraining in a specific skill area, the organization helps them findjobs in the community. In some cases, however, training maybe coordinated with a specific employer. In this case, traineesreceive training in skills needed by the employer, and theemployer selects new hires from among those who successfullycomplete the training. If funds and administrative regulationspermit, some CBOs offer upgrading training to employers.

Employers may not link directly with a CBO. Often otherproviders, such as educational institutions, will subcontract toCBOs to fulfill a contract with an employer. This is done tomake use of funds available for special populations that can beserved by the educational institution's training program. Train-ing provided by CBOs generally serves skilled trade workers,although technicians may also receive training from this source.

Relationships Between Employersand External Training Providers

To meet the challenge of training a technical work forcethat can cope with the demands of the new, technologically ad-vanced workplace, employers and educators are building newand more flexiblepartnerships.

While employers ace large suppliers of technical training,perhaps a more important role for them is to act as a bridgebetween their employees and external training providers. Therelationships established between employers and external train-


ing providers spawn training opportunities in areas ranging fromcontinuing engineering education to the remediation of basicskills for 'rntry level, nontechnical employees to prepare themto 1..:ceii, t. the training that will make them part of the technicalwork force.

By developing an understanding of the availability andservices provided by external training providers, employers areable to make more informal training choices. They can take theinitiative to build new relationships that will not only be morecost-effective for both the employer and provici r but will havethe end result of providing a renewable source of the skills andknowledge required for future employment in technical jobs.

Relationships between employers and external trainingproviders can take many shapes and forms. Basically, however,such relationships fall into two categories; connections andlinkages.

Connections are generally informal and largely advisoryrelationships whose primary function is information exchange.For employers this may mean advising a provider about labormarket trends, industry skill needs, or the specifics of educa-tion or training programs that will prepare individuals to findjobs in the community. It may even mean an employer's en-couraging an outside provider to train students in specific oc-cupations by lending equipment for the training or consultingon curriculum design or delivery. For the provider, this kindof relationship hinges on providing feedback to the employerabout provider capabilities in preparing the community's futurework force or suggesting ways that employers can assist the pro-vider in constructing strategies to meet industry needs.

Employers often view this kind of information exchangeas a community service. Consequently, such connections do notnecessarily result in the employer's hiring ind:viduals trainedby the provider. In fact, the main characteristics of connectionsare that (1) employers do not pay to have training set up orprovided the provider establishes the curriculum and enrollsstudents; (2) trainees are not current employees of the employer-adviser and may never be future employees, even if they arewell trained, because the employer-adviser has not made a corn-

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mitment to hire; and (3) employers sign no contracts and payno money to support the training.

Some examples of connections are employer representa-tion on provider advisory boards, exchange of technical train-ing equipment between employer and provider, and lendin ofexpertise (or even experts) to help identify industrial applica-tions of technology and design curriculum for training in thoseapplications.

Linkages, on the other hand, are formal, contractual rela-tionships between employers and training providers whose func-tion is to provide occupationally specific training or retrainingfor employed technical workers. Linkages are generally initiatedby the employer to meet specific training needs. Employers payexternal providers for training services and drive curriculumdesign and delivery methodology. Training is focused exclusivelyon the needs of the contracting employer.

Connections often lead to the establishment of linkagesand vice versa. If, for example, the president of a local com-pany serves on a community college advisory board, there isa connection between employer and provider. If, after attend-ing several meetings, the company president concludes thatthe college can meet some of his or her firm's technical trainingneeds, the president may offer to pay the college for establishinga specific technical training program for company employees.A linkage is established.

Conversely, when an employer purchases occupationaltraining programs from a technical institute, it may lead to anadvisory role or the employer may assist the institute's serviceto the community by donating equipment. Connections and link-ages often foster each other and can be considered interdependent.

Following arc descriptions and examples of effective con-nections and linkages between employers and external providersof training.

Connections

Connections are forged in many ways. Some of the mostcommon are advisor/ committees, cooperative work experiences,


personnel exchanges, curriculum sharing, continuing education,and networking.

Advisory Committees. Advisory committees are the mostc,mmon form of connection between employers and educationalinstitutions. They may also be the most formal of all connec-tions, allowing a great deal of information to be shared betweenthe two entities. This shared information helps educational in-stitutions build a state-of-the-art curriculum and provides em-ployers an opportunity to influence the preparation of technicalworkers from whose ranks they will choose future employees.

An advisory committee, composed of representatives fromthe local business community, is usually formed to provide ad-vice to the leadership and administration of an educational in-stitution anc' also to (1) help identify the employment andtraining needs in the community, (2) help develop and supportthe long-range goals of the educational institution, and (3) serveas a communication link between an educational institution andthe private-sector community.

Technical advisory committees provide advice on coursecontent, laboratory equipment and layout, and learningactivities they may even refer indiN :duals for part-time teachingor consulting servi:es. Committee members usually assist inevaluating students, pling gradua.es, and developing cooper-ative education openings.

Advisory committees and their members can be valuableresources and effective tools for improving the skills of the workforce. However, the degree to which the committees are usedvaries from institution to institution, according to the scope ofthe assigned purpose and mission of each. The effectiveness ofsuch committees depends on careful selection of members, cleardelineation of committee responsibilities and roles, and atten-tion to meeting schedules, arrangements, and communication.Educational institutions usually select industry representativeswho have a sense of their firm's future technical training needs.Once on the committee, the representatives often participatelong enough to gain a full appreciation of the institution, usuallythis means being involved in more than one event or cycle of

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the school's program. Close involvement of faculty with com-mittee members is conducive to developing good working rela-tionships and signals to both parties that the committee's roleis important and members' advice will be taken seriously.

The CAD/CAM and Engineering Technology Programat Cuyahoga Community College in Cleveland, Ohio, operatesfifty occupationally focused advisory panels each year. One suchpanel is the Engineering Technology Program Advisory Com-mittee. Industries represented on the advisory panel includeLTV, a major supplier of steel products to the automotive in-dustry, with an annual revenue of $8 billion, and General Elec-tric, a producer of major appliances and lighting products, withan annual revenue of $39 billion. The panel is composed of tenindustry representatives, most of whom are either technical sub-ject matter experts or training professionals.

The purpose of the panel is to inform the college aboutthe preparation and retraining needs of technologists. Subjectmatter experts provide information about technical content andnecessary equipment. Training specialists pruvide job analysisinformation and feedback about the knowledge, .-,kills, andabilities that engineering technologists need to perform on thejob. On the basis of panel input, the college establishes a generictechnologist training curriculum applicable to all industries. Theadvisory panel reviews the course curriculum to determinewhether any revisions are required. The committee meets twicea year to evaluate the program's success and recommend modi-fications. The companies that compose the advisory panel benefitfrom this relationship by being able to access an available andsteady supply of well-trained technologists. The college benefitsfrom an improved state-of-the-art curriculum.

Cooperative Work Experiences. Cooperative work experi-ence programs (co-ops) place approximately 200,000 studentsper year in private-sector jobs while they are taking courses ateducational institutions. Academic work and co-op experiencesmay take place simultaneously or may be alternated by aLademicsemester. In co-ops, students receive an introduction to therealities of the workplace, get an opportunity to apply concepts

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and principles learned in the classroom, and earn wages thatcan help with educational expenses. Students return from co-op experiences with valuable insights and information that reflectcurrent practices, problems, and levels of technology develop-ment in the private sector. Educators can take advantage of theseinsights to keep their academic programs current and to enhanceand extend basic educational programs and tailor them to meetthe needs of the private sector. Employers benefit from co-opprograms by learning about potential emi.loyees and receivingstudents' workplace contributions, usually for less than fullsalary. Employers also have an opportunity to contribute im-portant suggestions and information to help keep the school-based curriculum up-to-date and relevant.

Effective cooperative education programs entail carefuldevelopment and planning to ensure that students experiencerealistic, educational work activities and that employers benefitfrom insights and skills that newcomers xi bring to their busi-nesses. It is also important that employers recognize the educa-tional nature of the students' work experience and createopportunities to provide instructional input so that students gainas much as possible from their involvement.

Northeastern University (Boston, Mass.), well known forincorporating co-op programs into its curriculum, offers a five-year technical co-op program in which 2,000 students have par-ticipated. The first year of a student's education is spent on cam-pus in a traditional academic setting. The remaining four yearsare spent alternating every six months between school and paidwork experiences, usually with different employers for each cy-cle. Six months of continuous employment allows students tobe involved in meaningful, long-term projects.

A faculty coordinator is responsible for placing studentswith area businesses. A student's immediate work supervisorat the employer site is responsible for structuring work and train-ing experiences. The supervisor provides written feedback tothe faculty coordinator about the student's work and academicprogress. Corporations that have participated in the co-op pro-gram include General Electric, Honeywell, Digital EquipmentCorporation, and IBM. IBM alone employs 240 co-op studentseach year.

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Northeastern continually works to improve the exper-iences of its students and the university's connection to industryby observing and evaluating other co-op programs around thecountry.

Exchange of Personnel. Finding qualified technical instruc-tors and keeping them abreast of rapidly changing technologyis a major challenge for most schools. Educators may meet thatchallenge in two ways: by borrowing instructors from industryto teach students and by updating their faculty by sending themto work in industrial settings. Educational institutions often hireemployees of local industries as part-time faculty to teach specialone-time courses or to teach on a regular basis in the evening,on weekends, or during the summer. Using employees from in-dustry, universities and colleges may tackle real industry prob-lems on campus by funding research projects or ongoingprograms that develop new technology.

Employers provide skill upgrading for technical facultyby offering programs that provide them with an opportunity toreturn to industry settings for extended periods of employment,often during the summer or other semester breaks, to updatetheir knowledge and skills and apply them to new technologicalprocesses. Some companies also lend their technical employeesto schools to conduct in-service training for their faculties.

Durham Technical Institute (Durham, North Carolina),a four-year technical college, keeps a planned microelectronicprogram as applicable to industry needs as possible. The schoolrecruited a program instructor from industry to make site visitsto employers with operational microelectronic programs to shapethe course content and identify equipment requirements (Abram,Ashley, Faddis, and Wiant, 1982).

Cincinnati Milicron, one of the largest equipment manu-facturers of industrial robots for factory automation, with an-nual revenues of $800 milion, provides training and technicalassistance on robotics systems to the faculty of the PiedmontTechnical College (Piedmont, South Carolina). This collabora-tion benefits the college by upgrading faculty and making themaware of Cincinnati Milicron's training needs. The collabora-tion benefits Cincinnati Milicron by ensuring a high-quality

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robotics training program and a steady supply of robotics techni-cians (Abram, Ashley, Faddis, and Wiant, 1982).

Sharing Curriculum. Postsecondary institutions and in-dustry may share curriculum that one or the other has developedand that can be used in academic and industrial settings. DigitalEquipment Corporation (DEC), a leading manufacturer of net-worked computer systems and associated communications equip-ment, with annual revenues of $9 billion, has supported anationwide series of programs to train computer service techni-cians. Schools choosing to implement the program are giventhe curriculum and are free to adapt it to meet their specificneeds. DEC also provides participating schools with equipmentand trains the schools' instructors at its own training facilities(Abram, Ashley, Faddis, and Wiant, 1982).

Continuing Education. Continuing education is trainingfor technical workers who want to expand their skills and know-ledge beyond their current jobs. Continuing education can bedistinguished from upgrading training in that upgrading pro-vides technical workers with up-to-date information on techno-logical advances on their current jobs, whereas continuingeducation reaches beyond job-related training and is focusedon th( future.

The relationship between employers and outside providersto provide continuing education is a nebulous one, requiringvery little cooperation between the two entities. In fact, it is arelationship only to the extent that students in continuing educa-tion programs are associated with a particular employer. Con-tinuing education is actually a connection between an employeeand a training provider, with the employer playing a very minorrole, perhaps as a coordinator or a conduit of information. Theemployer rarely has any input into the design or developmentof continuing education curricula.

Continuing education may consist of working toward a

courses relating to a particular field or discipline. Many schoolsoffer continuing education students the option oftaking a coursefor credit or for continuing education units (CEUs).

degree or a certificate or simply taking a course or series of


Continuing education is most often pursued by high-leveltechnical workers, usually technical professionals, althoughtechnicians may also pursue continuing education. Technicalprofessionals need to reach beyond their current jobs becausethey are on the cutting edge of technology they are generallythe employees who lead the organization into the future andcreate or expand the state of the art in their fields of expertise.Engineers are one group of technical professionals that regularlyparticipates in continuing education. Rapid advancements inscience and mathematics technology have increased this par-ticipation. Continuing education for engineers is most prevalentamong manufacturing, electrical, and aeronautical engineers,although participation in continuing education is more heavilyinfluenced by career level than by field or discipline (NationalAcademy of Engineering, 1985). In addition to receiving con-tinuing education in technical areas, senior-level engineers aremuch more likely to receive nontechnical training, particularlymanagement training.

The pursuit of continuing education may be a broad re-quirement of employment. Scientists and engineers may be re-quired to demonstrate their expertise by acquiring increasinglyhigher levels of education c-,,r t specified period of time. Forexample, they may be required to complete a master's degreewithin five years of employment or publish works in noted publi-cations on a regular basis. Many employees not governed bysuch requirements often pursue continuing education for per-sonal reasons such as self-improvement and career development.Employees may be motivated to pursue continuing educationfor pay increases or possible promotions. Generally, if the educa-tion pursued is job related (an ambiguous and often broadlydefined term), the employer will pick up the tab, usually usingan employee tuition assistance fund.

Four-year colleges and universities are the most commonproviders of continuing education because c. the research oppor-tunities and facilities available. However, two-year institutionsand professional societies also provide continuing educationcourses. Employees usually attend courses at the educationalinstitution on their own time, in the evening or on weekends,although some employers have brought college courses on-site


through arrangements with local universities; employee:, attendon their own time but do not pay for the courses.

"The University of Wisconsin, iviadison, is an exampleof a university that operates an extensive continuing educationprogram for engineers through its University Extension Office.This program is unique in that it is staffed by a full-time fac-ulty solely devoted to continuing education programs for engi-neers and offers a wide range of programs. Other universitiesthat have continuing education programs for engineers includePurdue University, the University of Texas, Oklahoma StateUniversity, Iowa State University, the University of Michigan,the University of Illinois, the University ofArizona, and GeorgeWashington University. All of these institutions have certaincharacteristics in common:

An availability of engineers as potential participantsThe support of local industryUniversity support for continuing engineering education ac-tivitiesSupport from the dean of the engineering schoolAn active program director

Another method of providing continuing education tohigh-level technical workers is for employers to allow theseemployees to take sabbaticals sabbaticals are common in theacademic world and allow high-level technical personnel to pur-sue in-depth education and research full-time over an extendedperiod (a few months to a year or more).

In some cases, continuing education may occur on thejob. An employer may provide opportunities for employees tobroaden their knowledge in various areas by rotating themamong departments or units on work exchange assignments. Forexample, the National Aeronautics and Space Administration,which has numerous departments devoted to unique sciencetopics or problems, arranges to have a scientist from one areawork in another area for a specified period of time (a few monthsto a year). Work exchange assignments are planned within theheadquarters of the agency responsible for broadening scien-tists' technical, management, and planning skills. These ex-

How Te:hnical Training Is Provided 651

changes benefit the organization by ensuring an exchange ofinformation for the benefit and enhancement of the total orga-nization.

Networking. One of the most effective ways for individualsin the field of technical training and education to stay abreastof new technology is to talk with their peers. Numerous organiza-tions and professional associations provide a forum for the ex-change of informatio-_, between professional vocational-technicaleducational personnel and employers. Associations gearedtoward educators are designed to improve program delivery,encourage scholarly attention in the field, and elevate the im-age of vocational-technical education. Interchanges among mem-bers of associations expose the members to new technologicaldevelopments and state-of-the-art knowledge in many specialtyareas. Even professionals outside these organizations have ac-cess to association information through journals, seminars, andconferences.

Students of vocational education also have numerous op-portunities to interact with their peers and members of the busi-ness community. Organized vocational student organizationsassist students in developing leadership and responsibility as wellas technical skills. These organizations encourage learning andtransition to the workplace by giving students the opportunityto function as junior members of trade, technical, and profes-sional group', as well as to practice and apply skills learned inthe classroom and laboratory. Vocational student organiza-tions operate on a not-for-profit basis, and their activities aresupported primarily through student-paid dues to the local,state, and national organizations. Business, trade, and industrygroups, technical and professional associations, foundations, andalumni of the vocational student organizations are accessed toprovide students with information on the skills and knowledgethey will need for a job in industry.

Linkages

Linkages can take a variety of shapes, largely dependingupon employer need. They include customized training pro-


grams, state economic development programs, apprenticeshiptraining programs, customer training providers, and traimi.3-programs from other employers.

Customized Training Programs. By definition, linkagesinvolve a buyer-seller relationship between an employer and anoutside provider of training. Employers establish linkages fora specific purpose: to address an identified training need. Alinkage may be a one-time relationship with a provider, or aprovider may continue to provide training to an employer onan ongoing basis.

An employer may purchase a generic training programfrom a provider or work with a provider to develop a customiz-ed training program. Customized training programs are adesirable option for employers because they meet specific trainingneeds. Potential providers of customized training are virtuallylimitless. Employers can link up with any number of organiza-tions; a few of those most commonly used are illustrated below.

Some of the most innovative linkages that an employercan establish are with educational institutions. Each can benefitgreatly from the other by making maximum use of the other'sstrengths. For example, employers have access to state-of-the-art technology, and educational institutions have the capacityand knowledge to conduct training on a large scale.

Industrial training programs offered to employer organiza-tions through contract agreements are highly flexible and efficientand meet specific training needs. The most successful programsare aligned with organizational objectives and tailored to meetcurrent business needs. Instruction is provided by regular orpart-time faculty or by local experts and trainers recruited fromother schools, industries, or the local tr. *ning market (vendorsand consultants). The curriculum is specifically developed foreach program by personnel in the college training office and theclient's organ Lation. Needs assessment and job/task analysistechniques are applied in order to create a course that can deliverthe particular competencies and skills the client requests.Technical, superviso, y, and/or managerial training are offeredas well as technical literacy and remedial courses.


Secondary vocational schools are not common providers ofcustomized training to employers because the focus of theseschools usually is not on the adult population. However, some,including the secondary vocational system in Ohio, have ex-panded their mission beyond the secondary level to address theneeds of adults, especially those employed by local industries.Ohio has fifty regional secondary vocational schools called jointvocational schools (JVSs) to which students are sent from areafeeder schools. In 1976, when these schools were established,Ohio made a :ommitment to train adults as well as senior highstudents in vocational skills. The Licking County JVS is oneof the schools that has taken the commitment seriously. Theschool has been providing area businesses with customized train-ing for more than ten years and has built a large vocationalresource center (VRC) to meet the increasing demands foremployer-based training.

The Utica, Ohio, plant of the Holt-Thane Company, a pro-ducer of streetlights for highways, contracted with the VRC totrain welders to weld light poles to their bases. Of eighty employ-ees, fourteen welders needed to earn company certification. Thenines" -six -hour customized program met from August 1987 toMa; 988 in four-hour sessions twice each week. The classeswere held on the company site in the evenings after the shift end-ed, and employees were paid for time spent in classes. The com-pany paid for the program, although the VRC helped Holophanesecure funds through the Ohio State Department of Develop-ment for companies that are expanding or upgrading. Holophaneknew that the VRC would provide an excellent program; it hadworked with VRC in the past on apprenticeship programs.

Declining enrollments in traditional two-year colleges andvocational and technical schools as the last of the baby-boompopulation has moved through the educational system havedriven these schools to seek new clients aggressively. Offeringcustomized training to business has proved to be financiallyrewarding to the schools as well as a valuable service to employ-ers. Thousands of employed technical workers annually receiveupgrading and retraining services through customized programsoffered by these institutions.


Three-fourths of all two-year colleges offer customized orquick-start training programs. Mcst of these schools have anoffice responsible for developing contract-training services withlocal business and industry. Customized programs are usuallydirected by a coordinator who continues to maintain a long-term relationship with clients after the completion of a trainingprogram, thus ensuring close attention to special requirementsand long-term quality.

In addition to training, two-year col: :ges offer other ser-vices to employers, including career counseling and remedialtraining to thousands of workers affected and/or displaced bychanging technology.

Piedmont Technical College has long been involved incustomized training. Monsanto Corporation, a large producerof chemi' al products, with an annual revenue of $6 billion,established a linkage with the college to provide a one-yearcustomized maintenance technicia. program to fourteen em-ployees. Monsanto agreed to hire all trainees who successfullycompleted the course. The company provided the school withjob analysis information, which Piedmont used to develop thecurriculum for the course. After its development, the curriculumwas reviewed by Monsanto subject matter experts prior to be-ing implemented. The compaity and the college worked togetherto develop a series of six criterion-referenced written and hands-on tests that were given to participants at the completion of thecourse

Flexibility and coordination are key elements in the suc-cess of Piedmont's customized training programs. Flexibility atthe college is marked by quick response to Monsanto's trainingneeds and in course scheduling, program length, and facultyassignment. Coordination is marked by the extent to which thecompany and the college worked together to develop the program.

Crouse-Hinds Corporation, a divison of Cooper Indus-tries, is a major manufacturer of electrical construction materialsthat has linked up with Onondaga Community College of Syra-cuse, New York, to assess the basic mathematical skills of itsproduction employees .n prep ' ration for training in advancedmanufacturing technique. In cases where production workers'


mathematical skills are deficient, the college counsels employetzabout the occupational necessity for skill upgrading ana pro-vides remedial mathematics trainir% that precedes training inspecific technical skills.

Four-year colleges and universities are not as aggressive indeveloping customized training linkages with employers as two-year colleges are. When the former do link up with employersto provide customized training, it is usually not in technicalareas. Four-year colleges and universities are a widely usedsource for continuing education of technical professionals andtechnicians, however. Most universities do not have specialoffices that work specifically on customized training programswith industry. Usually these programs are coordinated by anemployee in a continuing education department or anotheruniversity office.

Employers can purchase prepackaged programs from ven-dors and consultants or can work with them to develop customizedtraining programs. One advantage vendors and consultants offerover other providers is that they arc extremely mobile and willusually come to the employer site regardless of location.

At American Telephone and Telegraph (AT&T), a ma-jor telecommunications employer, noted professors from leadingtechnical universities, such as the Massachusetts Institute ofTechnology and the University of California, Berkeley, are con-tacted by the corporation to lead seminars on scientific topicsat AT&T facilities. Before a contract is established between theconsultant and AT&T, however, the consultant must demon-strate to the corporation's satisfaction an unc'exstanding of thesubject content and an ability to teach adult learners. Potentialconsultants appear before a board of subject matter and instruc-tional design experts to demonstrate their competency in thesetwo areas. AT&T also reviews the course curriculum proposedby the consultant. After passing review, the consultant is cer-tified as an AT&T science instructor.

Community-based organizations conduct customized trainingon a much smaller scale than other providers, generally becausethey do not have the funds to conduct this type of training ona large scale. Technical training can be very expensive, and

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CBOs do not have the resources to purchase the specializedequipment that is often needed. One ex-Ample of a CBO thatdoes provide customized technical training is the nonprofit Op-portunities Irdustrialization Center (OIC) in Philadelphia,Pennsylvania. The mission of the OIC is to provide a varietyof services, including training, to special populations in thePhiladelphia area.

Comcast Cablevision is a cable television franchisee thatprovides cable service to customers in the Philadelphia. area.When the cable company first located in Philadelphia, it con-tracted with the OIC to provide preemploymmt training to thirtytrainees, eleven of whom were hired by the company at the com-pletion of the training program. Soon after start-up, Comcastbegan to grow very rapidly and, in 1988, needed to train seventynewly hired cable service technicians, cable installers, and linetechnicians. The 010 subcontracted with Temple Universityto provide the training but maintained an administrative roleand monitored the program. The courses were provided on-siteat Comcast and consisted of two classes lasting two weeks andtwo classes lasting lour weeks. Because of the success of the pro-gram, Comcast plans to continue working with the OIC in thefuture.

State economic development programs have probably done moreto foster linkages between employers and educational institu-tions than anything else. Most of the fitly states offer customizedtraining as an incentive to employers considering relocating tothe particular state or expanding their operations within the state.Educational institutions are being used more and more as adelivery system. These institutions, primarily community col-leges and technical institutes, are targeted as deliverers becausethey are located throughout the state, and they already havethe facilities and resources to offer the training.

Most economic development training prog_ams are tar-geted at manufacturing industries and provide training in avariety of technical skills and occupations. Usually, the educa-tional institution pros ides much more than just training pro-grams; it links up with other organizations in the state whennecessary to provide employee screening, recruiting, and hir-

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ing; customized training materials; job and task analyses; andmuch more.

Employers are equal partners in the development anddelivery of the training programs. Representatives from theschool and the company jointly plan a training development andimplementation strategy.

In North Carolina, the Industrial Services Division (ISD)of the state's Board of Community Colleges assists the NorthCarolina Department of Commerce in luring prospective com-panies to the state by advertising the technical strengths of itscommunity colleges. The board also gives technical assistanceto community colleges by helping them design and implementquality training programs.

Similarly, networks of community colleges in South Caro-lina work as teams to transfer new technology to industry. Forexample, six community and technical colleg i in the state shareresponsibility for different aspects of computer-aided design(CAD), such as sensors. The colleges optimize their resourcesby working as a team and having each college serve as a specialistfor a particular area of CAD. Information is tht.A shared amongcolleges in the network and used to help attract industry to thearea.

Apprenticeship training programs require a three-way part-nership between an employer, a labor union, and an educationalinstitution (WP.:. brod, Persavich, and L'Angelle, 1981). Con-tributions of the three entities vary and are subject to negotia-tion. For example, instructional content may be determined bythe educational institution and the industry, whereas testing,interviewing, and candidate admission may be conducted ac-cording to government, company, and labor union guidelines.Instructors and facilities may be provided by the college and/orthe employer, while master craft workers from the union guidethe apprentice through various job experiences necessary forjourneyman certification.

All three parties benefit from this collaboration. The unionmaintains control over admission to the program. Industry hasa voice in determining what the apprentices are taught andreceives workers who are academically better prepared than if

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they had not received formal, job-related training. The schoolimproves its academic curricula, receives positive publicity, andgains assistance in fulfilling its mandate to serve the community.Two examples of how a local college and industry work jointlyto provide apprenticeship training are given below.

The first six months of a four-year industry apprenticeshiptraining program is provided by Cumberland County Collegein New Jersey. The twenty-six-week program incorporates anexisting associate degree program at the college and an industrytraining program in engine lathe operation and associated ma-chine shop practices. The apprentices receive one evening perweek of related training from the college and forty hours ofspecialized technical training on-site from AT&T (Warmbrod,Persavich, and L'Angelle, 1981).

In 1981, Alabama Technical College in Gadsten, Ala-bama, teamed up with the local steel industry and the Bureauof Apprenticeship and Training at the U.S. Department ofLabor. They developed a program to jointly train local appren-tices in specific industrial-electrical occupations. The programincluded theory and practical laboratory experiences in theclassroom and in an industrial setting. The program used a self-paced, individualized format (Warmbrod, Persavich, and L'An-gelle, 1981).

Customer Training Providers. Employers can link up withtheir original equipment man...facturers to offer training toemployees who are to use the new equipment. OEMs often offercustomized training programs as a part of a package employersreceive when they purchase equipment. OEMs also pr widetechnical professionals from their ,ustorrier organizations withinfe:mation on the latest advancements in technical hardware.This permits technical professionals to make informed decisionsabout the purchase of equipment and the incorporation of newtechnology at their work sites. Among manufacturers that pro-vide training to their customers are Cincinnati Milicron, a pro-ducer of machir es, computer controls, and robotic systems, withannual revenues of $800 million; Westinghouse, a major ap-pliances manufacturer, with annual revenues of $10 billion; and

9


Square D, a manufacturer of electronic control and industrialautomation products, with annual revenues of $1 billion.

Training Programs from Other Employers. Employers canestablirh linkages with other employers to make maximum useof another's resources. Most employers are experts at what theydo; other employers can tap these resources at a lower cost thandeveloping the expertise themselves. United Technologies Cor-poration (UTC), a $17.2 billion high technology products,systems design, and manufacturing company, is not in the com-mPrcial flight business but owns ten corporate jets and employsapproximately forty pilots. Because of the enormous expenseof obtaining the simulators necessary to conduct pilot trainingin-house, the only practical solution was to contract with anairline company that trains pilots to use the same kind of planesUTC owned. The company selected Trans World Airlines(TWA), a $4 billion commercial airline, to provide training toUTC pilots because of TWA's expertise and experience in pro-viding pilot training. TWA trained UTC': new pilots ,I.nd up-graded veteran pilots on a regular basis for ten years, until UTCsold its Boeing 727s in 1986 to purchase smaller aircraft.

Delivery of Technical Trainint. Programs

It is :rnportant to recognize mat relationships betweenemployers and outside p:oviders have improved efforts to pro-vide technical training. However, other factors are also respon-sible for recent improvements in the provision of technicaltraining. New, high-technology delivery methods such assatellite networks and interactive videomake it faster and moreefficient than ever before for employers and outside providersto work together to train technical employees.

Satellite Networks. The most significant of the high-techdelivery methods, satellite networks, are being used to aid em-ployers in sharing programs and information with each otherand allow universities to send programs easily and directly toemployer sites. In fact, as a result of this technology, an entire


university has been founded, a university that has no campus.Its programs are accessed by employees solely through satellitenetworks. The National Technological University (NTU) is afully accredited, advanced degree awarding institution thatdelivers its programs by means of satellite delivery systemstransmitted from various universities. NTU offers programsleading to a master of science degree in computer engineering,electrical engineering, computer science, engineering manage-ment, and manufacturing systems engineering. NTU has aboard of directors composed of industry representatives who pro-vide consultation on curriculum design and development.

The Association of Media-Based Continuing Engineer-ing Education (AMCEE) also delivers educational courses toemployer locations via satellite. AMCEE is a consortium of morethan thirty universities committed to sharing information oncontinuing education for engineers, information that is deliveredthrough the most advanced techniques. Ninety percent of allmedia-based graduate and continuing engineering educationprograms are represented by the AMCEE (National Academyof Engineering, 1985). AMCEE, like NTU, has an advisorypanel composed of industry representatives who provide con-sultation on training needs.

A number of corporations have also joined together totransmit continuing education programs for engineer_ by satel-lite. These programs are usually developed internally or withthe aid of universities and professional societies. They offer qual-ity, in-depth courses that are on the cutting edge of technology.Course content focuses on current engineering job responsi-bilities.

Texas Instruments, a manufacturer of electronics prod-ucts, including peripheral computer parts, wit!, revenues ex-ceeding $4 billion, and Dupont, a diversified chemical andenergy company with profits exceeding $27 billion, are two com-panies that offer satellite courses to their employees and toemployees of other organizations. Both offer day-long seminarson developments in electronic technology to other companiesvia satellite. Sharing courses through satellite networks makestechnological advancements available to other organizations and

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encourages the spreading of costs of training and developmentamong organizations.

Interactive Video Technology. Interactive video technologyprovides a training scenario that simulates a work environmentand allows the trainee to be an active participant in the learn-ing process. Although interactive video comes in various for-mats and levels of sophistication, most interactive videoprograms that are used by employers today are very sophisticatedtape- or disc-based systems that merge video and computertechnologies to produce a highly interactive system. The learnerinteracts with the video/computer, usually by means of a key-board or touch-sensitive screen.

A typical interactive program combines graphics, text,and sound to provide an interesting and attention-grabbing ex-perience that keeps the learner motivated. A unique feature ofinteractive training programs is that they allow the learner toaccess only those parts of a program that he or she needs. Ran-dom accessing allows the learner to jump ahead or repeat varioussections as necessary rather than moving sequentially throughthe program.

Employers use interactive video training programs forseveral reasons:

They are more cost efficient than more traditional learningsystems.They are more time efficient than other learning systems.Training can be standardized and centrally controlled.Training can be delivered decentrally.The programs are competency based.They are self-paced.

Some form of interactive video technology is used for trainingor other purposes by 11.6 percent of organizations with fifty ormore employees (Smith, 1987).

For interactive video programs to be effective, they mustbe carefully designed. These programs should be extremelycreative in order to be memorable to the learner, they should


motivate the learner to change behavior, and they should mea-sure that change in behavior (Cohen, L'Allie r, Stewart, 1987).Moreover, the organization of such programs should be clear,this is especially important because they are not linear. The paceshould be quick enough t_ hold attention but not so fast as toconfuse the learner, and the learner should have as much con-trol over the program as possible (Smith, 1987). Finally, thereshould be some way for the employer to track the program user'sprogress.

A company that uses interactive video technology fortraining is Federal Express, a 8188 million company that deliverspackages overnight by air to locations throughout the UnitedStates. Domestic Ground Operations, one of the divisions ofFederal Express, provides training through interactive video tomaintenance and engineering personnel. Federal Expresslieves that interactive video is the most effective means for train-ing this group. The programs are developed with a minimumuse of tex and maximum use of graphics, and employees movethrough the training program at their own pace. They work onlyon the skills they do r.Jt know and repeat exercises on those skillsuntil they achieve the desired proficiency level. Federal Expresscan take the programs on-site, which minimizes the time thatemployees are off the job. The progress of the maintenance andengineering trainees is tracked by a Macintosh computer systemthat monitors the use of the program and the proficiency levelsreached by the users.

CHAPTER 4

Best Practicesin Techiaial Training:Centralized Systems

This chapter highlights three companies with centralized train-i.,g systems. In each company, training is designed, developed,and delivered at the corporate level. The companies profiled areCarrier Corporation, Crouse-Hinds/Cooper Industries, andNiagara Mohawk Powcr Corporation.

Carrier Corporation

Carrier Corporation is a division of United Technologies,Inc., a major designer and manufacturer of high-technology prod-ucts and systems serving the industrial, commercial, and defense-related aerospace markets. Other United Technologies divisionsinclude Pratt and Whitney Engines, Otis Elevator, SikorskyHelicopter, Norden Defense Systems, Hamilton Standard Con-trols, and United Technologies Automotive Systems. UnitedTechnologies employs approximately 190,000 people in 300plants and a variety of sales offices located in fifty-seven coun-tries. During 1987, the company realized a net income of $592million on sales of $17.2 billion. This represented a significantincrease over 1986, when net income was adversely affected byrestructuring am. employee severance write-off expenses.

Carrier Corporation is the world's leading manufacturerof heating, ventilation, and air-conditioning equipment. During

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78, Training the Technical Work Force

1987, it continued record sales for the fourth consecutive yearby achieving sales of .S3.2 billion (an increase of 14 3 percentover 1986 sales). Carrier's s,:ccess is largely attributable tooverseas expansion, a weaker dollar, increased sales s olumes,and greater operating efficiencies.

Carrier and its subsidiaries employ 33,000 people inmanufacturing plants and distribution and sales centers locatedthroughout the world. The company's operations are organizedunder five major divisions: Purchasing, Centrifugal Refrigera-tion, Carlisle Compressor, Carrier Transicold, and Replace-ment Components. Carrier also has a research function that isstructured under the Engineering/Research and Developmentgroup.

Three major efforts have contributed the most to Car-rier's successful performance. First, the company has expandedits operations through sixty acquisitions and joint ventures intwenty-eight countries from the early through mid 1980s. Asa result, the company has strengthened its distribution network,broadened its service base, and penetrated markets in countriesotherwise closed to foreign manufacturers. Second, the com-pany has continued to expand its highly successful replacementparts business (1987 net income increased by 65 percent), whichwas created in 1986 through the consolidation of its Carrier,Bryant, Day and Night, and Payne equipment components divi-sions. Third, operating costs hate continued to decrease as aresult of the company's five-year strategy /which was initiatedin 1985) to reduce costs, streamline operationn, and increaseproductivity.

Through its continued emphasis on research and develop-ment, Carrier plans to design and develop technically com-petitive and innovative products that offer greater efficiency andreliability an I incorporate more precise electronic controls. Thisstrategy is also supported by United Technologies throughgreater research and development funding.

Strategic Goals

During the past several years, United Ted- ilogies hasexamined all of its operations as part of an overall strategy to

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Centralized Systems 79

improve products and services and to increase its sales and earn-ings. United Technologies has grouped its operations into "corebusinesses" that reflect the greatest financial strength and poten-tial. As a result of the corporation's operational assessment,numerous operations not fitting into a "core business" weredivested, several other operations were realigned, overall em-ployment was reduced, and overhead and material costs weredecreased. Current and future strategies emphasize the expan-sion of United Technologies' "core businesses," becoming a moreefficient and innovative manufacturer, and being more respon-sive to customers' needs.

As a division of United Technologies, Carrier completedan examination of its operations and as a result, reduced itsemployment, decreased its operating costs, and improved itsproductivity. Its expansion by acquisitions and joint venturesand its consolidation of replacement parts business also resultedfrom the operational assessment. Carrier's current and futurestrategy is to continue its expansion, increase operating efficien-cies and reduce costs, Lnd develop improved and technologicallyadvanced products.

Training Structure

Organization. At Carrier, all phases oftechnical trainingare centralized. The technical training staff, which is locatedat the company's headquarters, designs, develops, conducts, andevaluates all technical training at Carrier. The Technical Train-ing Department is organized under Industrial Relations (Per-sonnel), which in turn reports to Manufacturing. The humanresource function for hourly employees reports to the technicaltraining. Technical training is structured under Manufactur-ing because 90 percent of the trainees are assigned to manufac-turing operations.

Technical training works closely with plant managementto evaluate current training and to determine additional train-ing requirements. Through membership on the Corporate Plan-ning Council with representatives from Carrier's five divisionsand the Engineering/Research and Development group, thetechnical training manager is involved in discussions concerning

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new and existing equipment operations. This enables technicaltraining personnel to plan and develop training courses well inadvance of new equipmert installation.

Through membership on the Corporate Training Coun-cil along with all other United Technologies training managers,the technical training manager can keep abreast of the latesttraining programs and techniques used at other United Tech-nologies companies. This council meets twice a year.

Staffing. The Technical Training Department at Carrieremploys six full-time and seven contract trainers. Full-time staffmembers have a background in the subject matter and are pro-vided with instructor training if they have had no previous train-ing in adult learning. The contract trainers are generally selectedfrom local community colleges or vocational/technical schools.Carrier uses contract trainers as a cost-effective means of sup-plementing its full-time training staff.

Target Groups. Technical training at Carrier is limitedto craft workers and first-line supervisors. Technical training'sgreatest emphasis and support in terms of management and fund-ing is with craft workers involved in setup, operations, or main-tenance. Course content includes mechanical, electrical, andelectronics operations as well as safety and hazard communi-cation. The second area of emphasis for technical training iswith first-line supervisors employed in technical areas. Theyreceive training in the same areas as craft workers do. Technicaltraining for first-line supervisors is part of United Technologies'strategy for integrating management and technical skills.

Technical training at Carrier includes apprenticeshiptraining, supervisory training, cross-training, retraining, andnew technology training. It also includes remediation of basicskills on a continuing but voluntary basis.

The process for selecting training candidates commenceswith the development of a course schedule and entrance re-quirements. Both are listed in a training bulletin that is dis-tributed throughout the targeted plants. Then the technical train-ing staff accepts anyone meeting the entrance requirements, on

9c


a first come, first served basis. An exception to this procedureis made for newly promoted or transferred employees, who areautomatically scheduled for training. Additionally, currentemployees are scheduled for skill updating whenever new equip-ment is installed or new technologies are implemented.

Linkages. The strongest linkage between technical train-ing and other training programs is with Carrier's managementdevelopment program for first-line supervisors. All courses forthese supervisors are conducted by a team consisting of thetechnical training staff (for technical content) and managementdevelopment trainers (for management skills). Other types oftraining are kept functionally separate from technical training.

The strongest links between technical training and otherhuman resource functions are in the areas of wage administra-tion and job evaluation for hourly employees. Both of these func-tions are organized under the Technical Training Department.Other less direct links between technical training and otherhuman resource areas (affecting hourly employees) are alsoorganized under the Technical Training Department.

Training Support of Strategic Goals

Technical training is actively involved in supporting Car-rier's strategic goals. First, through participation on the Cor-porate Training Council, the technical training manager is keptadvised about how other United Technologies Company train-ing functions support their strategic goals. This interface withother United Technologies' training departments can be a sourceof new training concepts and techniques. Second, throughmembership on the Corporate Planning Council, the trainingmanager is involved in discussions concerning the acquisitionof new equipment. This enables the department to begin design-ing and developing supporting training packages immediatelyfollowing procurement authorization and ultimately to providethe skills and knowledge Carrier's technical employees will needto handle new, more efficient equipment and technologies.

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Crouse-Hinds/Cooper Industries

Crouse-Hinds is a division of Cooper Industries, a diver-sified, international manufacturing company doing business inthree primary industry segments. Cooper Industries Electricaland Electronics Products segment, which includes Crouse-Hinds, Bussmann, Beldon Wire and Cable, McGraw-EdisonPower Systems, Cooper Lighting, and other operations, manu-factures equipment for primary and secondary transmission,distribution, and control of electricity and lighting for residen-tial, industrial, and commercial users a.-Id wire and cable forelectronic and consumer product markets. Cooper's Commer-cial and Industrial Products segment includes Cooper Air Tools,Cooper Tools, Kirsh, Wagner, and other operations, leadingmanufact. rers and marketers of high-quality hand tools, in-dustrial power tools, hardware, auto parts, drapery hardware,and window coverings used by consumers, craft workers, andindustrial workers in construction, manufacturing, and do-it-yourself activities. Cooper's Compression and Drilling ProductsDivision, which includes Ajax-Superior, Couper-Bessemer Recip-rocating, Cooper-Bessemer Rotating, Gardner-Denver Miningand Construction, and other operations, provides a broad lineof machinery and aftermarket support services to oil and naturalgas drilling, production, and transmission markets; industrialusers; and mining and construction industries worldwide. CooperIndustries employs a total of approximately 45,000 people aroundthe world.

As it did for many manufacturing companies, 1988 provedto be a Lhallenging yet very rewarding year for Cooper In-dustries. The pressures it faced included steep rises in the costof some raw materials and persistent volatility in the energymarkets. The company's improved performance on a per sharebasis, its second-best year ever came as a result of strong de-mand for most of its products combined with benefits derivedfrom its continued focus on increasing efficiency, maintainingand improving market position, and generating the levels of cashneeded to fund acquisitions and capital programs.

As of 1988, Cooper was benefitting, along with the restof the U.S. economy, from a sixth consecutive year of peacetime

1 0


expansion a postwar record. Improved demand from indus-trial, electronic, automotive, and some electrical markets plusthe contributions of several complementary acquisitions boostedrevenues almost 19 percent, from $3.6 billion in 1987 to $4.3billion in 1988. Net income grew 29 percent, from $173.8 millionto $224.4 million, reflecting not only higher revenues but alsothe benefits of manufacturing improvements and efficienciesgained from the integration of previous acquisitions. Fullydiluted share earnings increased 27 percent, to $2.20 from $1.73in 1987.

The continuing strength of the industrial sector contrib-uted heavily to Cooper's gains. Industrial production and capac-ity utilization rose steadily during 1988, triggering additionalspending for plant improvements and maintenance and raisingsales of Cooper's products to its traditional markets. New con-struction spending, on the other hand, was mixed. Sluggishresidential and commercial building was offset somewhat bystronger activity in industrial and highway construction.

Spending by utilities picked up in response to an increaseddemand for electricity, especially in rural areas, stimulatingorders for Cooper's electrical protection products. Worldwideproduction of electronic equipment also continued on an up-ward trend that resumed in 1987.

Continued price volatility in world oil markets depressedpetroleum equipment operations, but higher demand for naturalgas and heightened activity in certain energy-related industriesimproved sales of Cooper's natural gas compression equipment.International markets in general were strong.

Crouse-Hinds, headquartered in Syracuse, New York,is the leading producer of explosion- and nonexplosion-prooffittings, enclosures, industrial lighting fixtures, plugs, and recep-tacles. Plant facilities are located in Texas, North Carolina, Il-linois, Connecticut, and New York.

Although Crouse-Hinds's products are essentially mediumto low tech, Cooper has invested heavily to modernize its plantsinto state-of-the-art facilities using high-tech manufacturing pro-cesses. This modernization has played a significant role in mak-ing Crouse-Hinds one of the most cost-efficient operations ofits kind.

1 n n.1. L1 4,


rts a group, the operations in Cooper's Electrical and Elec-tronic Products segment its largest segment once again re-corded solid increases in both sales and operating earnings. Itshould be noted, however, that despite retaining a large degreeof autonomy, Crouse-Hinds has been fully integrated into Cooper'selectrical and electronics operations. Separate revenue and in-come figures for the company are tht_efore not available.

Strategic Goals

Cooper Industries is aggressively pursuing the goal ofachieving leadership through itb products, market position,financial performance, and return on investment, as well as byimproving its manufacturing processes, developing and manag-ing its human resources, and continuing its management philos-ophy of strength through value-added manufacturing. Thecompany intends to become the most efficient supplier in eachof its business areas while maintaining or achieving marketleadership in each area.

The company is accomplishing this goal by pursuing threemain strategies. First, Cooper is selectively broadening its prod-uct lines through acquisitions and new product development.As a part of this strategy, the company is acquiring complemen-tary product lines and divesting itself of businesses that do notfit its long-term plans. Cooper is in a strong position for ac-quisitions and new product development programs becauseoperating revenues and the divestiture of incompatible productlines generate the cash flow necessary for both acquisitions andprograms to improve operating efficiency.

Integration of prior years' acquisitions continued through-out Cooper's operations during 1988. The consolidation and ra-tionalization of all lighting operations, begun two years earlier,was completed successfully. Cooper now is one of the largestlighting fixture manufacturers in the world and has one of thebroadest lines to offer customers.

A number of smaller, complementary product lines wereacquired in 1988, along with two critical strategic acquisitions.The largest was RTE Corporation, a Wisconsin-based manufac-

103


turer of electrical distribution equipment. Consequently, whatis now called Cooper Power Systems has emerged as the number-one player in distribution transformers and is stronger com-petitor in the overall industry, with a wide range of products.The second strategic acquisition was Beswick, a manufacturerof fuses and related products in the United Kingdom. Beswickhad provided an internationalpresence that complements Cooper'svery strong domestic market position.

Cooper's second strategy is to continue investing in manu-facturing facilities and equipment to increase its operatingefficiency. The company is continuing its investment in pro-grams to improve the efficiency of its manufacturing facilitiesand to train its employees to solve customer problems in themost cost-effective way.

The third key strategy is to consolidate and streamlineexisting and newly acquired operations to reduce costs and im-prove customer service by taking advantage ofcommon custom-ers, distribution channels, and manufacturing processes. Anexample of this strategy can be seen in Cooper's consolidationof all lighting operations into a single group. This has enabledthe company to integrate all administrative functions for allgroup members and to reorganize all manufacturing processesaccording to light source, with one or two factories producingspecific lighting types within the group.

As a result of its strategies, Cooper Industries has devel-oped a loyal, stable customer base by producing high-qualityproducts that enjoy brand-name recognition. It holds leadingor significant market positions in each of its key product areas.Cooper has also established itself firmly as a leader in relativelystable, lower-technology markets that are not subject to revolu-tionary change or obsolescence but can be expected to grow atapproximately the same rate as the general economy and thatare diverse enough to provide balance against fluctuations inthe economy.

Crouse-Hinds's role in supporting Cooper's overall strate-gies lies in its ability to produce high-quality products that ensureits continued leadership within its market areas. Crouse-Hindsis continuing to renovate its facilities to incorporate state- of -the-

I. 0


art manufacturing processes, thus ensuring its high standingamong its many customers.

Training Structure

Organization. Technical training at Crouse-Hinds is cen-tralized, along with all other types of training. This centraliza-tion has been achieved by establishing a single training directorwho oversees all training activities from the company's headquar-ters in Syracuse. Located within Personnel, this centralized train:ing function helps to achieve coordination among all trainingactivities, facilitates better communication between training andthe line functions, and enables the development of linkages be-tween training and other human resource functions. Crouse-Hinds' training function reports both to company manage-ment and to the training function at Cooper's headquarters inHouston.

The training manager at Crouse-Hinds operates as a "one-person shop" but has developed a very close working relation-ship with company managers and employees. This networkserves as the primary means for determining training needs andfor gaining accurate feedback on training outcomes. Additional-ly, all performance appraisals contain a section on personaldevelopment and are routed through the training manager tohelp in identifying training needs.

Staffing. Since the training manager operates without afull-time staff, she or he has maximum flexibility to use outsideresources as well as line personnel to meet the company's train-ing needs. Much of the new equipment training that has becomenecessary as a result of plant modernization is conducted or pro-vided by original equipment manufacturers (OEMs). This train-ing is planned well in advance of equipment installation andis normally funded as a procurement cost. Additional supportfor training design and development is provided by local col-leges and universities. All outside providers are prescreened,however, to ensure a thorough understanding of adult learn-ing processes as well as the specific training need and desiredoutcomes.

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Training is delivered through two sources. First, the out-side providers responsible for development can also deliver thetraining. This delivery may be accomplished either on-site orat the provider's facility, depending on the type of training. Forexample, most OEM training takes place at the plant site. How-ever, many of the college- and university-developed programsare delivered on campus on the employees' time but at com-pany expense.

The second delivery source is through expert operationspersonnel who are selected to train their co-workers and thenprovided with a background in adult learning theory and train-the-trainer instruction.

Target Groups. The primary target groups for trainingat Crouse-Hinds include technical professi,mals, technicians, andcraft workers. All target groups receive equal emphasis in train-ing because both Crouse-Hinds's and Cooper's managementfirmly believe in developing their employees to their fullestpotential.

Technical professionals at Crouse-Hinds consist mainlyof engineers. They receive their training and development op-portunities through OEM training, college and university pro-grams, and courses provided in-house. Virtually all trainingprovided to technical professionals is job related, and all is forskill and knowledge updating.

All craft workers are currently required to serve appren-ticeships. However, as plant modernization continues, the craftworker and technician designations at Crouse-Hinds are g. adu-ally merging. All craft workers are currently required to pur-sue a two-year degree through a local college, following acurriculum that has been developed by the college to companyspecifications. The program includes courses intended to up-date the workers' skills or courses to help them develop pro-fessionally in nontechnical areas. The workers take the courseson their own time but at company expense. Upon completionof the program, all of the employees will be designated as techni-cians. Additional training is provided to both technicians andcraft workers through OEMs or through other in-house pro-grams using expert instructors.

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In addition to the job- or task-specific training providedto each target group, Crouse-Hinds offers a full range of safetyand hazard communication training to ensure full compliancewith government regulation.

Linkages. Because training is centralized under one in-dividual and located within Personnel, there is very close coor-dination among the various types of training provided toCrouse-Hinds employees. Aside from centralization, however,these linkages are attributable to three factors. First, staffingand employee development policies at the company encouragetraining all employees and filling vacancies from within. Second,the company's open training policy permits any employee to takeany course offered through the company. Finally, the companyis committed to maintaining strong communication links amongall parts of the organization.

The principal links between techLical training and otherhuman resource functions exist through the appraisal and, moreindirectly, through the compensation processes. A section of eachemployee's performance appraisal is devoted to professionaldevelopment. By using the appraisal form together with em-ployee interviews, the employee and his or her supervisor jointlyidentify skill or knowledge deficits and determine training needs.These appraisals are then reviewed by the training manager,who develops training plans to address the needs.

Technical training's link to compensation is due chieflyto the fact that Crouse-Hinds stresses that employee develop-ment is an individual benefit that will be provided and paid forby the company. Every employee is encouraged to participatein training, not only for general professional development butalso to become more versatile and eligible for promotion tohigher-paying positions.

One rather unusual but critical link to the human resourcefunction is the company's outplacement program, which becamenecessary because of downsizing due to plant modernization anda market downturn. The program, which was introduced im-mediately upon notification of layoff, provided not only for jobtraining to qualify workers for new positions with other com-

1 0 7


panies bat also provided counseling, typing suppor telephonesupport, and a library facility for the employees. Through thisprogram, 50 percent of the laid off employees were placed withineight to ten weeks and all were placed within six months afterlayoff.


Management at both Crouse-Hinds and Cooper Indus-tries believes that a key to corporate success is a well-trainedwork force. Training therefore plays a major role, not only byproviding job training but also by providing additional profes-sional development opportunities to all employees. Technicaltraining directly supports the company's strategic goals by en-suring that al! employees are provided with the best availablejob training as a means of assuring continued customer satisfac-tion with quality products and high name recognition.

Niagara Mohawk Power Corporation

Niagara Mohawk is an investor-owned utility that pro-vides electricity and natural gas products and services to thelargest customer service area in New York State. It supplies elec-tricity to 1.46 million residential, commercial, and industrialcustomers within a 20,000-square-mile service area from LakeErie to the New England border and from the Canadian borderto Pennsylvania, and it provides natural gas to 450,000 custom-ers in central, eastern, and northern New York. Within its ser-vice area, the company operates seventy-seven hydroelectricfacilities, five fossil-fuel (coal, oil, and natural gas) plants, andtwo nuclear plants, as well as an integrated and interconnected(with other utilities) electricity transmission network. It alsooperates a 6,495-mile natural gas pipeline system. Moreover,Niagara Mohawk is involved in the growing business of pro-viding electricity and gas transmission services to other utilities.Finally, under its diversified operations group, the companyowns and operates the following businesses: Opinac Investments,Ltd., which is a Canadian-based investment and energy corn-


pany as well as a utility; Hydra-Co, which builds and operatespower production facilities; and NITECH, which markets ad-vanced instrumentation systems to the utility industry.

In 1988, Niagara Mohawk posted operating revenues of$2.8 billion (up 6.9 percent from 1987), with net income of $482million, an increase of 179.1 percent. The company employs10,400 people throughout its operations.

In the past several years, the changing regulatory climatewas a detriment to Niagara Mohawk's performance. In responseto increasing public criticism over the funding of constructioncosts by utility customers, the New York Public Service Com-mission disallowed recovery of certain Nine Mile Two nuclearunit construction costs through the rate-setting process. Con-sequently, the company was required to write off the costs in1987, which resulted in a significant and record loss. The rom-pany's high construction costs were in part attributable to thenationwide disfavor with nuclear energy, which caused delaysduring the planning, construction, testing, and start-up phases,as well as changes in federal and state regulations governingnuclear power generation. The latter factor caused numerousexpensive modifications to be made during the actual construc-tion period. Additionally, the New York Public Service Com-mission has continued to reduce the company's authorized rateof return on equity, which in turn has reduced net income andwill reduce future profits.

Since 1987, Niagara Mohawk has undertaken an exten-sive cost reduction program to eliminate $100 million in costs.Costs are being or have been reduced through the eliminationof 600 jobs, a reduction in officers' salaries, cutbacks in depart-mental budgets, and the postponement of projects not consideredessential to daily operations. The company also increased itsoperating efficiency by reorganizing its structure along morefunctional lines.

In conjunction with the reorganization, the companycreated a new senior management team comprised of individualswho have both company experience and a fresh approach tobusiness. The team is responsible for examining all facets ofNiagara Mohawk's business to identify strengths and areas inwhich products and services can be expanded.

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To further increase operating efficiencies and reduce costs,Niagara Mohawk has implemented a prograni to extend theoperating life of its fossil-fuel power plants. Rather than replaceaging plants with expensive new facilities, the company is em-phasizing preventive maintenance and select refurbishment andmodernization of existing plants as a more cost-effective alter-native. : ) extensive test and monitoring system identifies whichplants, , =terns, or components should be refurbished or shouldreceive more intensive preventive maintenance.

In addition to reducing costs to improve its performance,Niagara Mohawk intends to capitalize on its basic strengths.Its primary strength is being a low-cost producer of an indispen-sable productenergy for homes and businesses. Its electric ratesare generally the lowest in New York State and its gas rates arecompetitive with other regional suppliers. The company's plantand transmission facilities and employees are among the mostproductive in the entire industry. Its products and services arehighly rated in terms of reliability and customer responsiveness.These strengths together with the rapid growth in its servicearea should help the company improve its performance.

The company's operating efficiency is also attributable toits mix of electric generating plants. Almost one-third of its elec-tricity output is generated by hydroelectricity, which is the mosteconomical electricity source. Of that, Niagara Mohawk produces29 percent of its own power in this way, while 62 percent is pur-chased from other major utilities, and 9 percent is purchased rromsmall independent hydroelectric plant operators. The backboneof the electric generating system is the company's coal-, oil-, andnatural gas-fueled plants. Although these plants, on average,generate about one-third of the company's power output, this out-put varies in response to fluctuations in demand. With the com-pany's program of upgrading rather than replacing existing plantsand the low cost of fossil fuels, this power source has becomerelatively economic. Niagara Muhawk also operates two nuclearpower units, which provide 14 percent of the company's outputwhen in operation. While construction costs for nuclear plantshave become prohibitive, their actual operating costs are relativelylow and more predictable than fossil-fuel plants. The remainderof the ccmpany's power is purchased from other utilities.

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Natural gas products and service businesses will also helpthe company improve its future performance. During the past sev-eral years, the price ofgas has declined, making it more attractivefor home and business use. With a continuing downward trend inprices and projected long-term availability, natural gas is expectedto play a larger role in the company's financial performance.

Strategic Goals

Niagara Mohawk's primary objective is to become an in-novative and responsive energy company that satisfies its cus-tomers' energy needs with a diversified line of quality- andprice-competitive products and services. The company will con-tinue to concentrate on its core businesses of electricity and gasproducts by striving to make them the preferred source for thelargest possible number of energy users and uses.

To accomplish its objectives, Niagara Mohawk intendsto defend aggressively its market share in key markets and ap-plications, expand business opportunities with existing custom-ers, and develop new markets for its existing products andservices. The company will also explore and develop attractiveopportunities in related business areas, such as advanced entzgy-related equipment and systems, value-added services, and powerand gas transmission services for other utilities. It will continueto work with state and local agencies to promote the New YorkState area and to attract new businesses and revitalize existingones.

To achieve its strategic goals and objectives, Niagara Mo-hawk intends to capitalize on its efficient and advanced infra-structure and its dedicated and well-trained work force (consid-ered the company's most valuable resource). With its employees,the company will introduce new, innovative procedures and equip-ment, increase efficiency and productivity, and work with custom-ers to improve service and identify new business opportunities.

Training Structure

Organization. Electricity and gas products and servicesare the core of Niagara Mohawk's business. Because the driv-

1 1 1


ing force is to make its electricity and gas products the prefer-red energy source for the largest possible number of energy usersand uses, training and development is a major support servicewithin the organization. Currently, more than 100 courses ofinstruction are available to employees. Many of these coursesare mandated by federal and state regulations and collectivebargaining agreements. The overall objective of the company'straining programs is to increase productivity, promote humanresource satisfaction and development, prepare employees forchange, and ensure a safer work environment. Through theyears, the company has depended on training to support newtechnologies, automation, scientific breakthroughs, more restric-tive regulations, and a changing work force.

Created in 1974, Niagara Mohawk's Systems Trainingand Development Department controls and coordinates all train-ing for all employees, with di ^xception of the nuclear divi-sion. The department is structured into seven activities eachheaded by a training directorthat represent the company's ma-jor training disciplines. The consumer services training activ-ity provides technical and supervisory training and developmentto customer contact employees, including consumer relationsand customer accounting personnel. The human resources devel-opment training activity provides training, education, and devel-opment courses to more than 2,000 of th, company's managerialemployees. The special programs training activity is responsi-ble for the orientation of new employees and communicationskills training for management employees. This group also pro-vides all training programs, such as Operation New Employee(ONE), Litigation Avoidance, and Engineering Economics, thatdo not relate to specific activities. The service training activityprovides technical training to employees assigned to the com-pany's Service Department and also conducts RA-vice-relatedminitraining programs throughout the company. The operatingtraining activity provides training programs to employees in-volved in the line, underground, gas, substations, welding, andtransportation operations. The fossil generation training activityprovides training support for the company's five major steamplants as well as materials management training for both fossiland nuclear personnel. Safety training was recently added as an

11.2


activity under the umbrella of the Systems Training and Devel-opment Department and is responsible for all safety-related train-ing programs, including Asbestos, Hazard Communications,and Work Area Protectici..

The Systems Training and Development Departmentfunctions as a central activity, even though it has facilities inthe following locations: Dunkirk steam plant, Albany steamplant, Dewey Avenue in Buffalo, technical training at RaceStreet in Buffalo, foss,i generation training at the Oswego steamplant, technical training at Fulton Street in Syracuse, a trainingcenter at Towpath II in Syracuse, a training center at SenecaStreet in Schenectady, and an administrative center at TowpathIII in Syracuse, where the department's manager is located. Theseven training activities are dispersed among the nine locationsspanning 24,000 square miles of franchised territory, and in factmay share facilities with each other as well as with the com-pany's operations activities. In the fu,ure, Niagara Mohawk in-tends to establish the Systems Training and DevelopmentDepartment within a centralized facility. There will, however,continue to be satellite training facilities in close proximity tothe training target groups.

Because safety is a paramount concern and its operationsand maintenance are so heavily regulated and closely onitored,all nuclear power operations are accomplished dec ...Arany bya separate company training activity.

The amount of technical training accomplished by eachof the seven activities varies, ranging from none for the humanresource development and special programs activities to almost100 percent for the consumer services activity. Basically, all ofthe training conducted by the nuclear training group is technical.Overall, approximately 5,222 employees are considered to beengaged in a technical occupation, and about 53 percent of theannual training budget is allocated to technical training. Tech-nical training is considered a top priority of all training becauseit helps the company both maintain and update skill levels asmandated by regulatory agencies and collective bargainingagreements. It also contributes directly to company efforts toimprove service quality and employee productivity.

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Within the Systems Training and Development Depart-ment, training is generally designed and developed centrally bythe appropriate training activity staff and presented either cen-trally at a group training facility or decentrally on-site, depend-ing upon the training program, course, and location of trainees.In all cases, the staff works closely with the departments thatwill receive the training to ensure that all training requirementsare met. The staff also assists individual operations areas indeveloping and conducting training courses that address issuestraique to each area.

Staffing. Niag..ra Mohawk's Systems Training and Devel-opment Department currently has a staff of forty-four employeeswho are allocated as follows: The manager of system trainingand development, who reports to the vice-president of humanresources, has one staff assistant (secretary); consumer serviceshas a director and eight staff members (two of whom are CAIspecialists); human resource development has one director andtwo staff members; the special programs activity has a director'and three staff assistants; the service activity has two staff mem-bers; the operating activity has a director and seven staff in-structors; the fossil generation activity has a director and teninstructors; and the safety activity has one director. Four repre-sented employees provide steno /clerical support for the staff.

The Systems Training and Development Department hasseven categories of staff positions, which are in hierarchical order:assistant instructors, who are virtually "in training" as trainers;instructors, who are responsible for stand-up instruction; asso-ciate training and development specialists, who are graduallyintroduced to program design and development in addition totheir teaching assignments; training and development specialists,who are responsible for all new course design and developmentwithin their activity in addition to teaching; and senior train-ing and development specialists, who now add consulting to theirresponsibilities beyond design and instruction. The other twostaff categories are system training supervisor and system train-ing director Promotion within this progression is based on re-quirements for a B.S. degree plus zero years of experience at


the lowest level to a B.S. plus twelve years of experience toqualify for "professional instructor status" at the senior level.

Niagara Mohawk uses a combination of the roles andcompetency levels listed in the American Society for Trainingand Development Models for Excellence and Kepner Trego as itsprimary models for determining its training staff job descrip-tions and for establishing selection criteria. In selecting newtrainers, Niagara Mohawk first searches the applications to iden-tify people with the required experience within a specific activ-ity. The training director then narrows the field of applicantsby means of weighted selection criteria (based on Kepner Trego).Finalists are often required to present exercises before a panelcomprised of members of the training staff. Final selection isbased on each applicant's technical expertise, communicationskills, personality, and attitude.

Upon selection, the new trainer is immediately enrolledin an intensive train-the-trainer program that is conducted eitherin-house by he System Training and Development Departmentor outside tha company in programs co-sponsored by 0.)rnellUniversity and the New York State Public Utilities TrainingAssociation under a contract agreement. Upon completing theprogram, the new trainer assumes the staff position for whichhe or she was recruited. Initially, the new instructor works withan experienced staff trainer who provides coaching throughoutthe first several training sessions. During that coaching period,the staff trainer continually evaluates the new instructor's per-formance to identify major strengths and areas needing improve-ment. The new instructor is then permitted to conduct trainingcourses alone. After serving as an instructor for one year, whichincludes coaching time, the individual receives an annual evalua-tion. If the evaluation meets certain criteria, the trainer is thenpromoted to the next career step within the training progression.

Almost all of Niagara Mohawk's training is accomplishedin-house by the company's training staff because this approachrepresents a significant cost savings. The company training staffis also considered .o be more attuned than outside training pro-viders to the company's operations, facilities and equipment,and requirements fo. training. The only exception to using corn-


pany trainers occurs when new equipment is installed and themanufacturer provides the initial start-up training.

Target Groups. At Niagara Mohawk, managers, super-visors, technical professionals, technicians, and skilled tradeworkers receive technical training. Because most of the managersalready have technical backgrounds, their training is usuallylimited to recurrent and "state-of-the-art" minicourses.

Because technical professionals, most of whom are engi-neers, and technicians also have technical backgrounds (theyare hired for specific skills and experience), technical trainingis not provided as a routine or on a scheduled basis. Instead,training is provided in response to a "request for training," whichis initiated by a field supervisor. The request describes the train-ing requirement and includes a justification such as to teach anew skill, method, or technique; to broaden employee know-ledge; to enhance self-development; to improve performance ofan existing skill; to comply with company policy or regulations;to satisfy a job progression requirement; or to increase produc-tivity. Once approved by the supervisor's senior officer, the re-quest is forwarded to the manager of the Systems Training andDevelopment Department, who then assigns the request to theappropriate group director. The director then meets with theoriginal requester to determine the validity of the request, ob-jectives of the proposed program, cost benefit of the program,and the best method for presenting the skills and knowledge re-quired. Finally, the training group develops and delivers theprogram. In the past, there have been so many requests for train-ing for these two target groups that the training department hashad to refer the requests to senior-level management for pri-oritization.

Skilled trade workers receive the most technical training,which includes skills update, new technology, and personal devel-opment training. Much of the training provided to this targetgroup is determined or mandated by collective bargaining agree-ments. However, additional training requirements are addressedthrough the same "request for training" procedure used for thetechnical professionals and technicians. The skiPed trade workers


actudly receive certification in the subject matter following com-pletion of each course and after having met the criteria and stan-dards established for the course. Course participants arepermitted to retake a course test only once to complete thecourse. If, after a second test, which must be taken within thir-ty days, an individual is unable to pass a course required forhis or her job position, that individual must bid out of the jobwithin ninety days.

Overall, the System Training and Development Depart-ment provides approximately 100 training programs and courses,which range from the nontechnical (such as Leadership Train-ing, Communications Skills, Supervisory Skills, and ServiceRepresentative Training for Gas and Electric) to the technical(such as Steam Plant Operator Training, Boiler/Furnace Analy-sis, Chemistry Technician Progression, Electrician Progression,and Gas Mechanic Progression). Course offerings are aboutevenly split between operations and maintenance training andcustomer service and communications training. Training meth-ods consist of classroom instruction and the use of self-pacedmanuals, videos, and computer-assisted instruction.

As part of Niagara Mohawk's Corporate Austerity Pro-gram, the training department has been required to review itsprograms and assign priorities on the basis of cost/benefit andregulatory or company requirement. Contrary to the mistakenbelief that when budgets are cut "training is the first to go," acritical review of the entire training operation by senior manage-ment resulted in the reinstatement of pending expense reduc-tions and in the addition of staff. The training departmentcontinually evaluates all programs to verify that each has adefinite benefit to the company's operations. The evaluationcon-sists of student and supervisor feedback after course comple-tion and a reverse review six months after course completionby the trainee, subordinates, supervisors, and peer groups. Onthe basis of this evaluation, courses are continually updated or,if warranted, discontinued.

Linkages. Because all types of training (except nuclearpower training) are controlled and managed by the Niagara

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Mohawk System Training and Development Department, theytend to be closely linked. And because each ofthe department'sseven activities presents some technical training, it is not un-common for technical training to be presented in combinationwith some other type of training. For example, when the con-sumer services activity trains the company's customer contractemployees who read electric or gas meters, it also includes tech-nical training concerning the portable electronic meter-readingdevices. Conversely, all four training groups are now includingboth supervisory and communications skills training with theirtechnical training in response to a new company emphasis onthese skills.

While there is no direct link between technical trainingand other human resource functions, training does provideseveral curricula that support career advancement and enhancethe employees' performance levels. Training curricula for elec-tricians, chemistry technicians, mechanics, and gas mech.micsoffer a series of courses that progress from a basic understand-ing of the subject area to a more advanced concentration inspecific areas. An employee's compensation level and promotabi:ity are linked to proficiency and knowledge levels gained fromtraining.


Technical training at Niagara Mohav,k directly supportsthe company's strategic goals. Training helps reduce operatingcosts by providing the skills and knowledge employees need tofunction more efficiently and productively. With its new em-phasis on supervisory and communications skills training, thetraining department helps to foster greater cooperation andteamwork among the company's employees. Training continu-ally promotes customer relations in a variety c: courses that carsbe presented alone or as a supplement to other training. It alsosupports the company's existing operations and equipment andnewly implemented technologies by providing update trainingas well as new technology training. This is especially criticalas Niagara Mohawk continues to upgrade its electricity gener-

II1


ation and transmission network both to improve product andservice quality and to expand into new services and service areas.Finally, training supports the company in complying with avariety of federal ; A state regulations that cover not only elec-trical power generation and transmission (as well as natural gastransmission) but also issues such as safety and plant emissions.

A more indirect way in which technical training supportsthe company's strategic goals is in its efforts to recover sometraining costs (as part of the company's austerity program)through packaging selected courses for sale outside NiagaraMohawk. For example, it is currently marketing nationally aninteractive video program that trains meter readers to use newportable meter-reading devices and is contracting technical train-ing for the Fort Drum military base personnel in Watertown,New York.

Having gained the support of "top management" and thecooperation of the union through the delivery of quality pro-grams while at the same time developing a highly professionalstaff, technical training has one remaining long-range goal: apermanent centralized training facility.

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CHAPTER5

Best Practicesin Technical Training:Decentralized Systems

This chapter highlights three companies with decentralized train-ing systems. The majority of the training at Alcoa is decentral-ized, with each location responsible for its own technical training.Federal Express has no corporate-level training function; eachof its three divisions is responsible for its own training. Fordhas a central training department, but the majority of its train-ing is designed, developed, and delivered by each of its depart-ments and divisions.

Alcoa

Alcoa is the world's largest aluminum company, as mea-sured by total assets, revenue, and aluminum shipments. Thecompany's primary business of fabricating aluminum productsis supported by a variety ofoperations involving the aluminumproduction process. These operations include mining bauxite,refining bauxite into alumina, smelting the alumina into primaryaluminum, and fabricating the metal into a variety of aluminumalloy products. These products are used in numerous packag-ing, transportation, building, defense, and industrial applica-tions. The company also supplies aluminum ingot and aluminato users outside the Alcoa system. In addition, Alcoa is theworld's largest recycler of used aluminum beverage cans.

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Other products produced by Alcoa include various chem-icals and engineered products made from alumina, aluminum,and other materials. Alcoa also generates electricity for someof its smelters and operates trucking and ocean shipping linesto transport Alcoa products and raw materials. As a technologicalleader in the industry, Alcoa operates the world's largest lightmetals research organization.

In 1988, Alcoa earned $861 million on sates of $9.8 billion.These earnings were generated primarily from the sale of 2.5million metric tons of aluminum products. By the end of 1988,Alcoa's assets were valued at $10.5 billion. Alcoa employs 59,000people (34,000 in the United States) at 140 operating and saleslocations in eighteen countries in North and South America,Australia, Europe, Asia, and Africa.

Contributing to Alcoa's strong performance in 1988 werean excellent economic environment and the strongest marketfor aluminum since the mid-1970s. Alcoa celebrated its centen-nial in 1988 and enjoyed the distinction of remaining at the topof its industry for the entire 100-year period.

During 1988, Alcoa took several actions to further im-prove its performance. First, the company sold ,., number of low-return businesses and select surplus assets, generating $186million in cash. Second, the company reduced long-term debtby $941 million (which represented 36 percent of total long-term debt). Third, consistent with Alcoa's increasing emphasison quality, a new Quality Department was established at thevice president level. Fourth, the company continued its pro-gram aimed at improved safety performance, with a decreaseof 20 percent in the number of serious injuries companywide.As a result, Alcoa continued to lead the aluminum industry insafety performance. Fifth, Alcoa implemented a new profit-sharing program for hourly and salaried employees at the com-pany's U.S. aluminum operations. This new program enablesparticipants to share in the profits upon the attainment of aspecified threshold. Sixth, the company established a new man-agement incentive program that links individual and grouprewards to targeted profit objectives. Finally, the companyreached new labor agreements with major unions covering15,000 employees located in fourteen U.S. plants. These agree-

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Decentralized Systems 103

ments extend into mid-1992. Although most of the foregoingactions were intended to improve Alcoa's performance over thelong term, many of them resulted in immediate operationaland financial benefits.

The company's accomplishments in 1988 were a con-tinuation of the major effort made by Alcoa to strengthen itsperformance in aluminum and engineered materials throughoperational restructuring and streamlining. Since 1985, thisrestructuring and streamlining has taken several courses. First,Alcoa invested an average of $860 million annually, from 1985to the present, in new and replacement equipment and facilitiesthat are more productive and that in some cases, produce new,high-technology products. In fact, one new facility that openedin 1988 is a high-technology mill (the first of its kind in the world)that produces aluminum sheet for beverage cans. Another newfacility, scheduled to open in 1989, will produce electronic cer-amics for the computer industry. Second, the company closedor sold several less efficient alumninum plants. Third, the com-pany wrote off $231 million in assets that did not meet the com-pany's performance objectives. Fourth, Alcoa sold assets valuedat $47 million, which in turn provided funds for higher-priorityprojects. Fifth, Alcoa continued to decrease its annual interestcosts by reducing its long-term debt.

Alcoa recognizes that the current favorable economic en-vironment, which has improved aluminum markets for the pastseveral years, is temporary and that eventually volume demandand prices will weaken. At the same time, the entire aluminumindustry has experienced increased international competitivepressure. The actions taken during the past several years to im-prove the operations of its core businesses, expand its currentproduct lines, and develop and introduce new products repre-sent Alcoa's strategy to surmount these economic factors.

Strategic Goals

To continue its successful performance and to overcomepotential adverse economic conditions, Alcoa is pursuing threemajor operational strategies. l'irst, the company intends to ex-pand the use to aluminum worldwide, especially in potential


high-growth markets located in Europe, Asia, South America,and the Pacific Rim. It plans to aggressively pursue opportunitiesin developing countries, where per capita consumption of alu-minum products is expected to increase as living standards in-crease. Second, Alcoa intends to become the supplier of choicefor aluminum and alumina products. The company will accom-plish this objective by anticipating both the present and futureneeds of its customers and by producing high-quality aluminumproducts that meet its customers' exacting demands. The com-pany also intends to adopt a more "partnership-type" relation-snip with its customers. Third, Alcoa plans to become a worldleader in quality. The company recognizes that to succeed inthe increasingly competitive, global marketplace, it must attaina high degree of quality not only in its products but in t,verythingit does. Alcoa's new corporat organization is a reflection of thiscommitment to quality.

In addition to these strategic goals, Alcoa is also pursu-ing the financial goal of a 15 percent return on equity. The com-pany's restructuring and streamlining efforts as well as its threeoperational goals are intended to help Alcoa achieve this finan-cial objective.

Training Structure

The majority of technical training at Alcoa is decentralizedwithin several areas of the corporation. Essentially, each loca-tion is responsible for its own technical training function, whichis structured under that location's organization. There is no for-mal organizational link among the various technical trainingfunctions. This review examine.: technical training at two loca-tions: Alcoa Laboratories and Tennessee Operations.

Organization. Alcoa Laboratories is the research arm ofthe corporation. Its responsibility is to meet the needs oftomor-row's markets for commercial and military aerospace, packag-ing, biotechnology, electronic packaging, high-temperature pro-cessing, and Lransportatioin by providing unparalleled technicalexcellence in aluminum, engineered materials, and related com-petitive technologies. As a result, much of the laboratories' re-

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search involves aluminum and aluminum alloys, ceramics, poly-mers, and composites. Alcoa Laboratories is composed of aprimary facility (Alcoa Technical Center) and a smaller researchfacility (Alcoa Research Laboratory), both located near Alcoa'scorporate headquarters in Pittsburgh, Pennsylvania. Additionalsmaller research facilities are located at other sites throughoutthe United States. This review focuses primarily on the technicaltraining accomplished at Alcoa Technical Center, which employs1,351 people.

The technical training function at Alcoa Laboratories isresponsible for the design, development, delivery, and evalua-tion of training for all employees of the labs. Although not aformal responsibility of the laboratories' training organization,some training is also provided, upon request, to employees fromother Alcoa locations and subsidiaries. Technical training isstructured under the Education and Training Department,which is part of Alcoa Laboratories' Human Resources Depart-ment. The training staff is located at Alcoa Technical Center(ATC), while the primary training facility is housed at anotherlocation halfway between the center and the corporate head-quarters building.

The corporation's plant in Alcoa, Tennessee (near Knox-ville), produces both primary products and fabricated aluminumsheet. The operation includes aluminum smelting, aluminumcan recycling, ingot production, hot rolling, cold rolling, sheetfinishing, and packaging. Approximately 3,200 people are em-ployed in two plant locations, and the major product is high-quality aluminum sheet used in the manufacture of aluminumbeverage cans. The operation is currently involved in an ex-tensive equipment modernization program to bring automatedequipment that will provide the high-quality aluminum productsdemanded by the marketplace. The eight-year modernizationwill involve an investment of approximately $500 million, with$150 million funding the installation of a state-of-the-art con-tinuous cold-rolling mill.

During the entire modernization period, technical train-ing will play a critical role in supporting the transition from theolder production equipment and processes to the new automatedproduction equipment and techniques. A training program was

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designed for each of the major pieces of new equipment andincluded basic process considerations, basic equipment operation,and the maintenance aspects of the equipment. With the new cold-rolling mill as the centerpiece of the modernization effort, specialattention was given to both the selection and training of the em-ployees involved. The training department assisted in the designand implementation of the employee selection system and thendesigned a detailed training plan for both the classroom andhands-on portions of the training. Employees were brought intothe new cold mill department nine months ahead of the projectedmill start-up. They were given intensive training in process, opera-tion, and maintenance of the new equipment, along with team-building traiking, and then heavily involved in the six-month com-missioning of the new mill. Even though Alcoa spent well over $3million to train the employees of the automated cold-rolling mill,the successful commissioning and rapid production "learningcurve" have more than justified the training expense. Moreover,that same initial intensive training program serves as a prototypefor much of the technical training accomplished at the plant today.

The technical training functions at the Alcoa, Tennessee,plant are part of a central training department that providesneeds assessment, instructional design, program developmentand delivery, and evaluation of training at the two plant sites.Upon request, this training department also provides support toemployees from other Alcoa plants. An informal relationshipamong the training functions at the various Alcoa locationsallows the exchange of training data and ideas. There is alsoa formal annual meeting among the domestic locations to discussa variety of common technical training issues.

At the Tennessee location, the training department reportsthrough the personnel manager to the operations manager. Theoperations manager in turn reports to a corporate manufactur-ing manager. The training staff and facilities, including offices,classrooms, plant ti aining lab, video studio, and computer train-ing facilities, are located in a training center near the two Ten-nessee plant sites.

Staffing. The training staff at Alcoa Laboratories consistsof nine full-time training professionals, of whom seven are Alcoa

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employees and two are full-time consultants. One to three part-time employees supplement the full-time staff. Staff membersare selected for their backgrounds in adult learning with special-ties in instructional design and educational delivery. Approx-imately half of the staff is involved in the design and developmentof training courseware, while other members are involved inthe management of the facilities and technologies associated withthe large number of media-based courses.

Course development is generally accomplished by a teamconsisting of a staff instructional design specialist, an expert onthe subject from Alcoa Laboratories, and an outside trainingcontractor with subject matter expertise. The staff trainer andthe subject matter expert initiate the training development pro-cess by reviewing a training problem or opportunity and estab-lishing a list of training objectives. An outside trainer is thenhired to design, develop, and teach the training package underthe direction and guidance of the staff trainer and subject matterexpert. Training staff members basically serve as project mana-gers over the contracted trainers because this arrangement isconsidered more cost-effective (by enabling more course develop-ment per staff member). Although most of the courses are alsodelivered by contract trainers, each staff trainer is required todeliver one course per year to maintain a competency in train-ing delivery.

At Alcoa Laboratories, training direction and curricula aredetermined by twenty curriculum committees, representing thevarious labs' technologies (such as advanced manufacturing tech-nologies, heat transfer, chemistry, and computers) and othertraining requirements (such as professional development andadministrative and clerical skills). The committees, which in-clude members from all employment levels, meet with the train-ing staff on a regular basis to identify course and curriculumrequirements as well as the future training direction for their re-spective areas. The training staff then meets biweekly with otherdepartment members to provide updates on programs under de-velopment, to problem solve, and to plan direction and activities.

The technical training staff at the Tennessee plant con-sists of six salaried employees and ten hourly employees. Thisgroup is supplemented by a variable size group of contract em-

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ployees, who are typically employed through a local two-yearstate technical school. The majority of the training is designedby teams consisting of instructional designers and plant subjectmatter expats. Much of the technical training is then deliveredby a subject matter expert.

The instructional designers are selected for their designskills and ability to express the instructional needs in writing.They also must have the ability to obtain information from theplant subject matter experts. All instructional designers are givenin-house training in instructional design to ensure a consistentmethodology. Both in-house and contract employees are usedin the instructional design area.

All potential instructors are selected for their subject mat-ter expertise and their ability to convey skills and knowledgeto trainees in an effective manner. Each instructor must undergoa testing and interviewing process prior to selection. Once se-lected, each instructor attends a five-day train-the-trainer course,with additional training as required. To keep up-to-date in theirsubject areas, all instructors attend refresher and new technologytraining in their respective fields. This update training can lastfrom several days to several weeks each year.

On some new equipment, the equipment vendor. will pre-sent the initial training to the plant area personnel with technicalinstructors in attendance. Generally, the technical instructorswill then take responsibility for the subsequent training sessionsas well as the maintenance of the particular training p gram.

Target Groups. Technical training at Alcoa Laboratoriesis primarily provided to managers, technical professionals (en-gineers and scientists), and laboratory technicians located at thefacility. Upon request, training may also be provided to engi-neers from other Alcoa locations on a space-available basis.Because of concerns that rapidly changing technologies are ac-celerating career obsolescence, technical professionals receivemuch of the training emphasis. Generally, the training subjectmatter involves the twenty technologies and other training re-quirements of the curriculum committees. Additionally, it in-cludes safety, hazard communication, and quality, which have

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become increasing concerns of the corporation. During 1988,Alcoa Laboratories' training function offered 104 instructor-ledcourses and 95 noncredit courses (by satellite).

Alcoa Laboratories' training function also operates tworesource centers that together offer 325 media-based courses(such as Industrial Operations, Computer Science, Safety, andPersonnel and Career Development) for independent study.Although primarily intended for Alcoa Laboratories personnel,the courses, most of which are video based, have also been madeavailable to other Alcoa employees. The courseware is usuallypurchased off- the-shelf, although the training staff has developedseveral courses in-house. In fact; two staff -developed courseshave become eligible for university credit.

Eighteen graduate-level and two undergraduate-level de-gree programs are offered to employees (primarily engineers,scientists, and technicians) of the laboratories. Alcoa TechnicalCenter also has access to nine channels of programming forbroadcast of courses from universities linked by satellite.

The responsibility for professional development at AlcoaLaboratories lies with the individual employee. Each employeeis encouraged (but not required) to complete between 40 and100 hours of training per year. With Alcoa's increased emphasison safety and quality, all employees are also receiving moretraining in these two areas. A computerized training manage-ment system located at Alcoa Laboratories tracks training pro-gress by course, individual, supervisor, or division.

At the Alcoa, Tennessee, plant, the primary audiencesfor the technical training developed by the training departmentare the hourly equipment operators, skilled hourly craftworkers,first-level supervisors, and maintenance technicians. In addi-tion, some professional technical employees and higher-levelsupervisors receive technical training courses at the trainingcenter. The training department is responsible for administer-ing an apprenticeship program for each of the location's five ap-prenticing crafts (electrician, machinist, mechanic, constructionspecialist, and truck repair mechanic). Each apprenticeship isa 6,000-hour program, usually completed over three years andconsisting of approximately 4,800 hours of on-the-job training

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and 1,200 hours of related classroom and laboratory instruc-tion. The training department schedules and monitors the en-tire apprenticeship program and maintains the proper records.All of the apprenticeship programs are recognized by the U.S.Department of Labor's Bureau of Apprenticeship Training.

Because of the automated and complex nature of the mod-ernized plant and continuous drive for quality and safety, heavyemphasis is also placed on upgrade training for the plant opera-tors, craft journeymen, and their first-level supervisors. Thetraining subject matter generally addresses either a specific train-ing problem or a new process or piece of equipment. Requestsfor training are usually initiated by the various plant depart-ments (operating, maintenance, or staff groups); occasionally,however, the training department identifies a particular train-ing requirement. Currently, over 200 different in-house technicalcourses are offered by the training department. Each year newcourses are designed and developed with an emphasis on retriev-ability for future groups. Most of the training is currently deliv-ered in a classroom or laboratory instruction mode. The trainingis supplemented with video, interactive computer-based train-ing, equipment simulation, and on-the-job training. Anothercurrent trend is to develop a variety of self-paced technical in-struction materials to meet the needs of differing learning ratesand variable class sizes.

Training is also provided for the plant's technical profes-sionals and technicians. This training is generally limited to moreadvanced technical issues, new equipment operation, and specificconcerns (such as quality and safety) of plant management. Ithas also proven very beneficial to cover many of the practicalplant technical issues for new engineers. In addition, the Ten-nessee plant is working with the Alcoa Laboratories traininggroup to develop a satellite education option for the local plan 'sprofessional employees.

Consistent with the interplant cooperation and exchangeof ideas and data, the Alcoa, Tennessee, plant provides infor-mal training support (on a reimbursement basis) to other plants.Th- support varies from the training of other plants' instruc-tors to the copying of technical course outlines. Training staff

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4:alls=====1111166....1111


members at the Tennessee plant may conduct training at anotherAlcoa location or provide consulting assistance.

The training function at the Tennessee plant is overseenby an operations training committee consisting of the trainingdirector, the operations manager, the two plant production andmaintenance managers, the engineering manager, the person-nel manager, and the financial manager. This group serves asa strategic direction-setting group for the training departmentand also helps in assigning project priorities.

Linkages. Linkages between technical and other trainingprograms are the most clearly defined at Alcoa Laboratories,where individual learning plans are developed for all employees.Since employees at Alcoa Laboratories are responsible for theirown professional and career development, the individualizedplans serve as a guide and list the technical and nontechnicaltraining required for each employee to achieve his or her pro-fessional and career goals.

At the Alcoa, Tennessee, plant, the employee performanceappraisal process helps link job performance to specific train-ing needs for salaried employees. In some plant areas, individuallearning contracts are now being used as guidelines for futuretraining requirements. For hourly production and maintenanceworkers, the job classification descriptions and the new equip-ment help drive the training development process.

One of the strongest links between technical training andother human resource functions can be seen in the craft appren-ticeship program. In this program, task analysis becomes thebasis for job descriptions, selection systems, compensation, andtraining requirements. Training is also linked directly to laborrelations because the basic mechanisms of the apprenticeshipprogram are defined in the plant's negotiated labor agreement.


Alcoa intends to maintain its leadership role in the alu-minum industry and to expand its position in the engineeredmaterials business. To achieve this, Alcoa must develop new


products and manufacturing technologies, upgrade existingfacilities, and expand into new markets. The company also in-tends to aggressively incorporate quality in all of its operationsand products and to become the aluminum industry's premiersupplier. Alcoa management is convinced that only throughhighly dedicated, competent, and skilled employees can the com-pany achieve its goals and maintain its industry leadership dur-ing its second 100 years. Technical training supports thesestrategic goals by providing its employees with the skills andknowledge necessary to operate high-technology plants andequipment that produce increasingly sophisticated products.Technical training also continues to update employee skills asnew advanced equipment and products are introduced.

Federal Express Corporation

Federal Express Corporation was the first company toengage in the overnight delivery of packages by air in the Unit-ed States. Federal Express pioneered in processing packagesthrough a single hub facility for overnight delivery to any loca-tion in the country. Currently, the company remains the leaderand one of the largest in the industry, with 241 aircraft, 21,000delivery vehides, more than 1,200 Federal Express offices world-wide (including 400 business service centers and 275 drive-through kiosks in the United States), and more than 60,000employees. The company operates package sorting centers atits superhub in Memphis and in regional hubs located in Oak-land, Newark, and Brussels. In addition to its U.S. operations,the company also provides international service to more than100 countries either through subsidiaries or independent con-tractors. During fiscal year 1988, the company processed 226million documents and packages, yielding $3.883 billion inrevenue (up 22.2 percent from 1987 revenue) and $187.716million in net income (up 386.3 percent).

Federal Express attributes much of its success to its consci-entious, efficient, and quality- and service-oriented work force.The company believes that a well-trained and highly motivatedwork force is crucial to its continued success, especially in view

I 9 4.1:: ,x.


of the technologies involved in its operations. Consequently,Federal Express continually promotes job satisfaction and ad-vancement opportunities through personnel policies that are con-sidered the nation's most progressive and innovative. In fact,the company is consistently included on lists of the best com-panies to work for in the United States.

To remain the leader in an industry that is becoming in-creasingly competitive, Federal Express has continued its ex-pansion efforts. It has established domestic operations in theUnited Kingdom, Ireland, Belgium, Holland, and Italy, per-mitting overnight service within these countries. It has also ex-panded its operations within Canada and, through anacquisition, has extended its service coverage to the entire Carib-bean. The company is also expanding into the Pacific Basinmarkets, with scheduled service to Tokyo. Within the UnitedStates, Federal Express is continuing to broaden its customerbase and service area through expanded facilities and intensivemarketing campaigns.

To support this expansion, Federal Express has investedextensive capital ($785 million during 1988) in equipment andfacilities. Currently, the company has 156 aircraft on order, in-cluding four MD-11s, for delivery through 1994. The companyhas also added a smaller hub in Indianapolis to assist Memphissorting operations. By the end of 1988, more than 20 percentof the company's total volume bypassed Memphis. In addition,the company is expanding its customer service centers andkiosks. Finally, Federal Express is expanding its COSMOS AIBtracking system, which instantaneously provides the shippingstatus of any package within its network.

The company has also pioneered new technology applica-tions in its attempt to ensure 100 percent reliability. Advancedavionics were installed in all aircraft to permit air operationsin bad weather, and most of the company's vans have beenequipped with highly sophisticated computers that streamlinepackage pickup operations. Finally, through the installation ofan on-site Powership computer system, customers have beenprovided the capability to initiate, at their own offices, queriesabout package shipping status.

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Federal Express has also develop .d a contract distribu-tion division, which includes the Parts Bank service, in whichthe company provides inventory management and distributionservices through Federal Express facilities.

Strategic Goals

Federal Express intends to remain a leader in the expressshipping industry and strives to have that leadel ship reflectedin its earnings. To maintain leadership in the increasinglycom-petitive express industry, Federal Express will continue to differ-entiate its service through market expansion and facilityimprovement. It will continue to broaden its U.S. service areaand expand its capacity to increase U.S. market share.

The company will also continue its expansion in existingand new international markets. Together, the increased U.S.and international market bases will complement each other,creating a global express package shipment network. FederalExpress views such u network as paramount for capitalizing onthe trend of an increasingly global economy. The company fur-ther intends to continue developing and refining its automatedtracking system and to provide additional and improved dataand to support the company's international network.

The company's efforts to improve customer service respon-siveness, convenience, reliability, and quality, are ongoing, andplans to identify new services, such as the PartsBank, will com-plement the company's overnight package service.

Federal Express projects continued and rapid growth inthe industry because of the increasingly interdependent globaleconomy and the increasing trend toward just-in-time inven-tory systems, in which on-hand inventories are minimal. In suchcases, companies frequently rely on air express to ship smallerparts directly from the factory to the user.

Training Structure

Organization. At Federal Express, training is organizedunder three divisions: Air Operations, which oversees flight

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operations training and maintenance and engineering training;Domestic Ground Operations, which is responsible far trainingin domestic ground operations (mainly for couriers and ^.ustomerservice representatives); and Human Resource Development,which conducts all other training not specific to Air Operationsand Domestic Group Operations (careerdevelopment, manage-ment development, employee orientation, and consulting). Be-cause this book is limited to technical training, this case studyfocuses only on Federal Express's Flight Operations training.Technical training for flight operations, maintenance and en-gineering, and Domestic Ground Operations is conducted in-0 -ndently of each area, is unique, and is targeted to specificemployee groups.

The flight crew technical training group is responsible fortraining employees responsible foroperating the company's air-craft fleet and for training employees on procedures and re-quirements set forth by government regulations. All trainingis designed, developed, produced, and presented centrally atthe Memphis headquarters facility. Co'jrseware is based onoperational feedback and regulations mandated by the FederalAviation Administration. The staff conducts all training courses,instructs in cockpit procedures, and operates Federal Express'sthree aircraft simulators and other cockpit training devices. Thestaff reports to the vice president for Flight Operations.

The maintenance and engineering technical traininggroup trains technicians who maintain the aircraft, facilities,ground support equipment, and package-handling equipmentas well as operational support personnel involved in aircraft in-terface (fueling, towing, and deicing). All training is designedand developed centrally at the Memphis headquarters but ina facility that is separate from the Flight Operations trainingfacility. Training is delivered centrally at Memphis or decen-trally on-site, depending upon the subject area and needs of thecustomer group. Ths training group reports to the vice presi-dent for engineering and heavy maintenance.

The Domestic Ground Operations technical traininggroup is responsible for training the company's couriers, trac-tor trailer drivers, service agents, and ramp personnel. Although

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116 Training th., Technical Work Force

much of the training within this group involves nontechnicalcustomer service subject matter, there is some technical train-ing in the areas of equipment operation and package handlingand computer operations (considered technical by Federal Ex-press) Training is designed and developed centrally in Mem-phis by Domestic Ground Operations' instructional design sys-tems staff and delivered centrally for Memphis-based employeesand decentrally for region-based employees. The staff reportsto the vice president for Domestic Ground Operations.

Staffing. The flight crew training staff is comprised ofap-proximately 140 members, 60 of whom are support personnel.They develop, produce, and present all training curricula, oper-ate the aircraft simulators, and develop all computer-basedcourses with interactive videos relating to aircraft operations.The training staff is selected on the basis of knowledge in oneor more of the following areas: aircraft operations, flight com-puter-managed instruction, and adult learning. Instructors areselected on the basis of their background (they may be aircraftcrew members, professional simulator operators, or former mili-tary pilots, flight engineers, or instructors) and indoctrinatedin the company's training techniques.

The maintenance and engineering training staff is com-prised of thirty-two members, of whom four are computer-en-hanced training developers, eight are aircraft systems specialists,three are avionics specialists, one is an engine specialist, twoare ground support equipment (GSE) specialists, two are ramp-training specialists, two are safety and health specialists, oneis a facilities maintenance training specialist, and two are trainingspecialists perienced in the new automated maintenance andmaterial system. There are current plans to hire six more compu-ter-enhanced training specialists. The training staff membersare subject matter experts in specific areas, such as electronics,hydraulics, air-conditioning, landing gear, and fuels. The train-ing group has been fortunate in hiring personnel with both sub-ject matter and training experience. New trainers are indoc-trinated in the maintenance and engineering group's trainingprocedures and methodology. Aircraft maintenance and inter-


face trainers are evenly divided between the 727 and DC-10 air-craft types.

The Domestic Ground Operations training staff is com-prised of 125 members, of whom 25 are located centrally at theMemphis facility and 100 are assigned to the regional trainingstaffs. Open training positions re made available to FederalExpress employees before the company seeks outside hires. Selec-tion is based on minimum job-specific position requirements,related communication skills, technical skills, and other manage-ment considerations such as structured panel interviews.

Target Groups. Flight Operations trains Federal Expresscockpit crews as well as cockpit crews from other airlines (undercontract). Subject matter concerns the operation of specific air-craft and is strictly mandated and specified by the Federal Avia-tion Administration.

There are five categories of flight operation training. In-itial training provides new employees with operational infor-mation for specific Federal Express aircnit in which they havebeen previously qualified. Transition training provides flightoperation training for another aircraft when a cockpit crewmember changes aircraft .ypes (for example, from a 727 to aDC-10). Upgrade training provides a flight crew member withthe aircraft operating information necessary to "change seats"from a copilot to a pilot. Recurrency training is the annual pro-ficiency training provided to all cockpit crews as per FederalAviation Administration regulations. Recur: envy training iscon-ducted over six days, three days for classroom/computer-man-aged instruction and three days for aircraft simulation. Finally,difference training instructs cockpit crews in the operating pro-cedure deviations between -Aircraft type models (for example,the 727-100 versus the 72 -200).

Flight Operations also provides sever-1 related courses,including Inertial Navigation and Weather Radar.

Flight operation training involves the following fourmethods: academics, including classroom instruction and self-paced instruction that use a variety of audiovisual resources;computer-based courses with interactive video; cockpit procedure

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instruction; and aircraft simulation with the company's threesimulators. Flight crews are actually trained by means of all fourmethods in a sequenced and integrated fashion. Final pilot cer-tification in specific aircraft is accomplished via the simulators.(The pilot's first flight in a company aircraft is actually a "rev-enue" or cargo flight.)

The maintenance and engineering training group is re-sponsible for training employees involved with aircraft, groundsupport equipment, facilities, and packaging-handling equip-ment and for training maintenance technicians and aircraftoperational support personnel. Training topics include the fol-lowing: aircraft maintenance; aircraft interface, including air-craft servicing such as fueling, deicing, and towing; facilitymaintenance, including air-conditioning and electrical; mechani-cal courses concerning equipment located at the Memphis huband regional hubs; and the maintenance of package-handlingequipment, including nonvehicle cargo equipment such as con-veyor belts and rollers and movable ground support equipment.

Most training associated with aircraft maintenance andinterface is required by law and is initially provided to newemployees and repeated annually to ensure continued profi-ciency. Skill update training is also provided when new equip-ment is installed or procedures are implemented, as well ason-site in the field. All maintenance training for employees in-volved with aircraft, facilities, and package-handling equipmentis provided centrally in Memphis. All aircraft interface train-ing is conducted locally on-sitt by Memphis-based trainersbecause this training must be pros ided on the actual equipmentin use and on the actual ramp if possible. Additionally, no singletrainer on-site could be qualified to conduct trainingon all theinterface equipment.

Package-handling equipment and facility maintenancetraining and safety and hazard communication training aregenerally provided to new employees (depending upon their ex-perience levels) and to existing employees upon installation ofnew equipment. Additional training is limited to courses thataddress specific problems. All training courses are designed anddeveloped on the basis of data and material provide:. ,::y air-craft and equipment manufacturers.


Training within maintenance and engineering is con-ducted by means of three methods: classroom instruction,computer-based courses with interactive video, and on-the-jobtraining. Specific courses may include one or more of the threemethods as the needs of the group dictate.

An emerging means of training for maintenance andengineering personnel is via interactive computer terminals. Self-paced courses that rely on such terminals have maximum graph-ics and minimum text and allow trainees to progress accordingto their own proficiency levels and to repeat sections if necessary.Additionally, such training courses can be taken on-site, therebyminimizing the time away from jobs.

The maintenance and engineering training group man-ages its training courses with a Macintosh computer, system.The computer tracks courses and attendees and monitors theuse of the computer interactive video training system.

The Domestic Group Operations training group is respon-sible for training Federal Express's couriers, tractor trailer driv-ers, ramp personnel, and service agents in the areas of equipmentoperation, package handling, and computer operations. Thelarger share of technical training within this group is withcouriers and service agents, who receive equipment operation,package handling, and safety instruction. Couriers and serviceagents also receive computer training in the operation of theautomated package tracking system.

Training is generally provided upon initial employmentand thereafter when new equipment is instelled or new pro-cedures are implemented. Training is conducted periodicallyfor skill updating and recertification.

While all courses are designed and developed centrally,they are normally presented locally by the on-site training staff.All computer-based interactive video training is also designed,coordinated, and administered by the central training staff.Training methods include classroom training, on-the-job train-ing, and computer-based interactive video instruction.

All three technical training groups use computer-assistedinstruction with interactive videodisc (IVD). This system allowsany trainee to take any course at his or her own pace. It alsopermits courses to be designed to meet the specific needs of any

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of the groups (for example, maintenance and engineering usesmore graphics and less text). IVD also allows tailored remedialcourses, where required. Finally, IVD permits training to beconducted on-site via terminals, thus minimizing the amountof time employees need to be away from their jobs. Becausecustomer service, tight schedules, and short lead times are char-acteristic of the overnight package shipping business, this fac-tor is especially critical.

Linkages. Because Federal Express's business is primar-ily customer service oriented, important links exist betweentechnical and other types of training. The actual linkages de-pend upon the technical training group.

As part of their initial training, flight crews receive sometraining in the importance of customer service and their rolein maintaining the tight schedules that are inherent in the over-night air package delivery business. The crews also receive anindoctrination in the company's procedures and career paths.

In addition to technical training, the Maintenance andEngineering Group also offers training in defensive driving, firstaid, and cardiopulmonary resuscitation. This group also pro-vides customer service training and an indoctrination in the com-pany's procedures and career paths.

In the Domestic Ground Operations Group, there is aneven closer link between technical training and other types oftraining. Close coordination among technical training, customerservice training, and marketing training is crucial if Federal Ex-press is to achieve its strategic goals of improving customer ser-vice, differentiating its service, and expanding its customer base.Since most Domestic Ground Operations employees come incontact with the customer, they must receive some customerservice training.

Linkages also exist between technical training and varioushuman resource functions. In Flight Operations, training is con-sidered a prerequisite for promotin and increased compensa-tion for both flight crews and aircraft. maintenance personnel.In Domestic Ground Operations, a pay-for-performance systemhas been implemented. Employees in critical job areas must

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demonstrate a proficiency in certain skill areas once or twicea year (depending upon the job) in order to qualify for increasedcompensation.


Technical train;ng directly supports Federal Express'sstrategic goal of expansion by training flight crews to operatenew-aircraft and by training support personnel to operate andmaintain new support equipment efficiently. In addition, techni-cal training ensures continued proficiency in operating and main-taining existing support equipment and maintaining existingaircraft to maximize availability and reliability. The chairmanof Federal Express is very committed to the use of technical train-ing to help the company achieve its strategic goals. In fact, heis the catalyst behind the computer-based, interactive video train-ing program that is being installed throughout the company.

Ford Motor Company

Ford Motor Company is the second-largest U.S. corpora-tion and one of the "big three" of U.S. automobile manufactur-ers. Through its global manufacturing and marketingoperations, it serves more than 200 countries and territories.In addition to being a major producer of cars, trucks, and farmequipment, Ford is involved in aerospace technologies, defense-related research, communications, land development, and finan-cial services. During 1988, the company continued its recordperformance by attaining a net income of $5.3 billion (an in-crease of 15 percent from a year earlier) on sales of $92.4 bil-lion (an increase of 16 percent). Ford employs 350,000 peoplethroughout its worldwide operations.

As a result of a recent restructuring, Ford's eleven divi-sions and sixty-three subsidiaries are organized within three ma-jor business operation areas. The Automotive Operations Areacontains all U.S. and international automobile and truck opera-tions. The Diversified Products Operations Area encompassestwo main groups of businesses. First, it includes the Automotive

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Components Product Group, which produces a variety of auto-motive material ranging from iron castings and plastics to elec-tronic engine controls and radiators. Second, it includes severalnonautomotive businesses, such as Ford Aerospace Corpora-tion, Ford Motor Land Development, Ford New Holland (thethird-largest manufacturer of farm equipment in the free world),Ford Glass Division (the second-largest glass manufacturer inthe United States), and the Rouge Steel Company (the eighth-largest steel producer in the United States). The Financial Ser-vices Group is Ford's third major business operations area andconsists of the company's First Nationwide Financial Corpora-tion as well as Ford's credit, insurance, and leasing operations.

As part of the U.S. automobile industry, Ford experiencedthe same decline that characterized the industry during the 1970sand early 1980s. During that period, oil prices continued toescalate, and by the late 1970s, the industry slipped into a reces-sion along with the rest of the economy. Consumer tastes werealso changing as reflected in the increased demand for vehicleswith better quality, style, fuel efficiency, and handling perfor-mance. The "big three" automobile manufacturers, however,were relatively inattentive to the changing tastes and consumerdemar ds. As a result, Japanese automobile manufacturers, whowere producing more stylish and fuel-efficient automobiles withgood quality and performance, gained a significant market shareduring the period. Prior to the industry recovery during themid-1980s, the entire U.S. automobile industry lost billions ofdollars. Ford, alone, lost almost $4 billion between 1980 and1982.

Ford's recovery and performance during the past severalyears has been outstanding. Its automotive market share hasincreased dramatically, reflecting an ability to design and developproducts that target its customers' demand for quality, perfor-mance, and style. During 1987, Ford continued to increase itsU.S. automotive market share, with increases of 2 percent (toa total of 20.2 percent) for cars and 1 percent (to a total of 29.1percent) for trucks. These increases represent a significantachievement considering the intensely competitive nature of theindustry. To maintain its strong competitive position, Ford

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has continued to invest heavily in new automotive designs andtechnologies as well as in new plant and equipment technologies.In 1987 alone, the company allocated $3.6 billion for capitalinvestments.

Ford's dramatic recovery can also be attributed to a rigor-ous cost reduction program that has decreased annual cost's bymore than $5 billion since 1980. Between 1978 and 1985, thisprogram reduced overall employment by 28 percent andeliminated several management layers. Further reductions areplanned through 1990. These reductions together with newtechnology equipment and procedures have enabled Ford to in-crease its productivity and achieve a profit level greater -hanits rival, General Motors, with a lower unit sales volume.

A key factor in Ford's recovery and subsequent successhas been a new corporate culture that was created during theearly 1980s by its then corporate president, Donald Petersen.Contrasting significantly with the previous corporate climate ofbureaucratic management, limited creativity, alienated workers,and customer unresponsiveness, the new culture promotes team-work, cooperation, participation, and trust among employees,unions, suppliers, and dealers. The underlying philosophy of thenew environment is that no one individual is responsible fordesigning, engineering, manufacturing, assembling, and sell-ing a product. Only through teamwork and the full participa-tion of all employees in all product phases can Ford succeed inthe future. Its Taurus and Sable automobiles represent thetremendous success of such a team effort in creating a totallynew car design that incorporates the styling, performance, andquality demanded by the customer.

Ford continues to promote the new culture through itsParticipative Management and Employee Involvement pro-grams. Nearly all Ford managers and supervisors have receivedtraining in participative management to learn how to involveemployees in setting goals, making decisions, solving problems,and planning. The company also stresses employee involvement,which encourages employees to assume a greater role in thedecision-making process. This new participative environmentat Ford is supported by many of the company's educational and

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training programs, which are designed to broaden employeeskills, expand job capabilities, and enhance personal growth anddevelopment.

The company's unions have also increased their level ofparticipation within the new corporate culture. In fact, theUAW-Ford "Best-in-Class" Quality Program, which created ajoint permanent team to develop quality-related training foremployees, is the product of a 1987 labor agreement.

The new environment at Ford has been a major factorin the company's recovery and continues to contribute to its suc-cess. It is actively supported by its founder, Chairman DonaldPetersen (who became CEO in 1985), all levels of management,and even the labor unions.

Strategic Goals

Ford's overall corporate objective is to improve quality,increase productivity, reduce costs, develop new competitiveproducts, and involve people at all levels. Each of the threebusiness operation areas has established specific strategic goalspertaining to its product group.

The Automotive Operations Area has established the goalof becoming a low-cost producer of high-quality and appealingproducts that respond to customers' needs and desires in everymarket in which Ford does business. To improve product qualityand competitiveness, the Automotive Operations Area has in-itiated the ALPHA Project, considered to be one of Ford's mostimportant and advanced projects. Under this project, all ele-ments of the automotive product and manufacturing techniquesare examined to identify better ways to build vehicles that areleaticrs in cost and quality. To date, the ALPHA Project canbe attributed to the following concepts: modular construction,automated body welding, flexible machinery, automated guidedvehicles, vision robots, and just-in-time inventories. The ALPHAProject will continue to play a major role in helping the Auto-motive Operations Area achieve its goals.

The Automotive Operations Area also intends to continueits "centers of excellence" concept, which provides for the shar-

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ing of Ford's worldwide automotive design and production re-sources. Under this concept, Automotive Operations is able toemploy the best resources worldwide and, at the same time,reduce costs and eliminate duplication. Ford has developed theWorldwide Engineering Releasing System to facilitate resourcesharing by providing an automated link between North Ameri-can and overseas manufacturing and engineering groups. Toremain viable in the increasingly competitive and global econ-omy, Ford plans to increase the use of resource sharing in thefuture.

Consistent with the new corporate culture, the AutomotiveOperations Area will continue to conceptualize, design, develop,manufacture, and market vehicles through an aided manufac-turing (CAD/CAM) and thus will assume a greater role in theint:grated design-to-engineering-to-manufacturing process.

Automotive Operations also plans to pursue more cooper-ative agreements with other automotive manufacturers, suchas Mazda, to capitalize on the technical and manufacturingsynergies of the two companies. The jointly owned Ford/Mazdaplant, which produces both Fcrd and Mazda vehicles, is an ex-ample of such an agreement.

The Diversified Products Operations Area is pursuing thestrategic goal of competing successfully worldwide within eachgroup of businesses by providing high-quality, cost-competitiveproducts that meet customers' needs. To help accomplish thisgoal, several units within this operation area will be expandedand several other units will be modernized.

Overall, the primary objective of the Financial ServicesGroup is to provide a source of stable earnings to counter thecyclical nature of Ford's automotive business. Its main strategyis to broaden the markets of its banking, insurance, credit, andleasing businesses by adding new, related businesses. It alsostrives to provide the best value to its customers through efficientoperation and service.

Within all three of its business operation areas, Ford in-tends to continue expanding and improving its ParticipativeManagement and Employee Involvement Programs. The com-pany believes that only with a well-trained and broadly skilled

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and motivated work force that functions with management asa team can the company succeed in the highly competitive andincreasingly global economy.

Training Structure

Organization. The education and training functions withinFord are largely decentralized according to the specific require-ments of its individual worldwide components. Certain aspectsof the company's development efforts such as those for the top2,000 senior executiveshave very concentrated programs thatare offered by dedicated organizations slch as the ExecutiveDevelopment Center located in Detroit, Michigan. This centerprovides a carefully selected range of offerings for Ford's topmanagement and serves as a focal point for the acquisition ofa "total perspective" on the business. In addition, unique nicheprograms examine aspects of the business in which, for exam-ple, leadership, strategic decision making, or association strategymay be a key factor in the long-term success of the enterprise.The design of executive development programs emphasizesteamwork and participation as important features of the learn-ing experience.

Although much of the training at Ford is accomplisheddecentrally at the division and plant levels, several broad-basedtraining functions have been assigned to the Management andTechnical Training Department, located centrally at the HumanResources Development Center in Dearborn, Michigan. Thetraining department, which is organized under the Personneland Organization office of the Ford North American Automo-tive Operations, provides training in three major areas: manage-ment (below the senior level), technical, and apprentice andlaunch. In terms of central training, this discussion is limitedto a review of the technical and apprentice and launch trainingsections because management training is generally less technicalin nature.

The training provided by the central technical trainingsection is concentrated in generic courses that are relevant toseveral of the company's divisions. The intent is to minimize

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the duplication of training effort related to subject matter thatapplies to many divisions (such as Allen Bradley programmablelogic controllers, which are used in many of the company'splants). All phases of training, from needs analysis, design,development, and validation through delivery and evaluation,are accomplished centrally.

The central apprentice and launch training section isresponsible for administering and coordinating the Apprenticeand Launch programs. For the Apprentice Program, the cen-tral staff works closely with the Ford-UAW joint ApprenticeshipCommittee, which determines national program standards andcontent, coordinates the on-the-job training segment with theindividual plants at which it is provided, and screens area com-munity colleges for potential sources of the formal classroominstruction segment of the program. For the Launch Program,which provides training in support of plant expansion and thelaunching of new products, the staff coordinates and overseesthe efforts of a training team that is temporarily assigned to aplant to conduct initial training and to establish a supportingtraining program and organization.

The bulk of the training at Ford, however, is decentralizedto the individual plants because most are involved in specializedproducts, functions, and missions. The plants are consideredto be the most knowledgeable in terms of their own unique opera-tions and consequently the best equipped to develop and con-duct training programs. Although there is some variation amongthe company's fifty-three manufacturing and assembly plants,each plant generally has a small training staff that is organizedunder the plant's Employee Relations Department. Each planttraining staff is responsible for accomplishing all phases of train-ing for subject matter that is specific to its particular plant.

To provide a specific example of p:ant training, we willreview the training operations of the Ford Cli,nate Control Divi-sion's Sheldon Road plant. The division consists of two U.S.and several overseas plants. The primary responsibility of thetraining staff at the Sheldon Road plant is to support the plant'straining needs. The staffmay, however, provide assistance, uponrequest, to the division's other U.S. plant training staff.


Staffing. The Management and Technical Training De-partment's Technical Training Section has ten full-time staffmembers with specialties in instructional system design, engi-neering, skilled trades, management development, training pro- .

gram administration, consulting, and computer learning. TheTechnical Training Section uses outside sources, such as con-sultants and area educational institutions, almost exclusively tomeet its training needs. Training staff members serve as "mini-managers" over the contracted efforts to design, develop, deliver,and evaluate training courseware. Most staff members are re-sponsible for managing several of the many training programsthat are being designed and developed by approximately twenty-five outside consultants. Extensive use of external resources in-creases the company's flexibility tremendously and enables moretraining programs to be developed.

The technical training staff does, however, accomplishmost of the needs analysis in-house through the periodic reviewof select companywide operations and continuous interactionwith line personnel. Staff expertise in engineering and the skilledtrades facilitates the review process and enhances the credibil-ity of the training function when dealing with line operations.

Presentation of the training programs is provided throughthree sources. The technical training staff may elect to deliverselect training courseware in-house at the Human ResourcesDevelopment Center. Training consultants may be contractedto conduct training, either at the Human Resources Develop-ment Center or at some off-site facility. Finally, through long-term agreements with several area universities and colleges, suchas Eastern Michigan University in Ypsilanti, Michigan, andthe Lawrence Technological University in Southfield, Michigan,instructional support may be provided by educational institutions.

The Apprentice and Launch Section of the Managementand Technical Training Department has a full-time staff ofeighteen employees. The Ford-UAW Joint ApprenticeshipCommittee, represented by five management members and fiveunion members, administers the Apprentice Program's overallstandards and provides direction and guidance based on thosestandards. The committee meets formally each month and infor-

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ally as needed to address issues concerning the Apprentice Pro-gram's structure and content. The committee administers andcoordinates the program throughout the parent company to en-sure that apprentices receive the appropriate form' classroominstruction at area community colleges and follow the properjob progression during their apprenticeship training.

The staff coordinates the program with individual plantjoint apprenticeship subcommittees, which oversee both theon-the-job training segment at their plants and the formal classroominstruction segment at area community colleges. (Each planthas a joint apprenticeship subcommittee consisting of one man-agement and one union employee.) The subcommittee is fur-ther responsible for recommending to the national committeethe best community colleges to serve as providers for the for-mal classroom instruction segment and for continually monitor-ing the instruction to ensure that it meets program objectives.

The central apprenticeship training staff is also msponsi-ble for the design and development of most of the COUrz,cyvar.sthat is used at the plants to complement the on-the-job trainingsegment. The staff may develop the courseware in-house withits own resources or externally through outside consultants.

The apprentice and launch section training staff also pro-vides a resource for administering launch training programsby overseeing and coordinating a launch team's developmentof a training function within plants. The launch tee A is respon-sible for creating a training plan, developing initial training pro-grams, and establishing a permanent training organization ineach plant to which it is assigned. After the new product is suc-cessfully introduced, the launch team transfers training respon-sibilties to the planes training organization and departs the plant.

The Technical Training Group at the Sheldon Road plantconsists of four full-time staff members who have subject mat-ter and human resource development expertise. The plant train-ing staff is supplemented by several line employees who havetraining experience and have taken the initiative to design,develop, and deliver several training courses. The training staffis responsible for all phases of training for courseware that iseither plant-specific or generic but plant-related. With its own

.t.I A r)-2(..)


resources, the staff accomplishes most of the training needsanalysis but only a limited amount of training design, develop-ment, and delivery. (It is generally limited to videotape train-ing to address new equipment setup, operation, and maintenanceor operational problems and classroom instruction for sw,cialcourses.) The majority of the training is accomplished throughoutside sources, such as original equipment manufacturers, con-sultants, and educational institutions, under the managementand direction of the training staff. The degree of outsourcingdepends on the specific course. Some courses are outsourcedin their entirety; in other courses, specific phases or parts ofphases are outsourced. Training delivery may be provided atthe plant by the staff or a contractor or at an off-site facility byan outside provider.

A joint training committee at the Sheldon Road plantserves as an advisory panel over the plant's technical traininggroup. The committee, which is comprised of twelve membersfrom production, engineering, and training (a plant trainingspecialist cochairs the committee with an hourly employee), pro-vides guidance and direction to the plant training operations.Each committee member is supported by a subcommittee con-sisting of personnel from the member's area of responsibility.The subcommittees continually ..-arch their respective areas forpotential problems or opportunities that could be addressedthrough training. The training committee meets twice a monthto review a.nd discuss training issues (such as operational prob-lem or planned new equipment and procedures) that have beenidentified by the various members and their subcommittels andto determine appropriate training solutions. These solutions areexpanded into a general training plan, which serves as a guidefor the plant training stag' when it designs and develops specificcourseware. The committee provides a mechanism for the plantline personnel, including engineers and skilled employees, tobecome more actively involved with training personnel in thetraining development process.

The plant technical training staff has the additional re-sponsibility of overseeing the Apprenticeship Program's on-the-job training segment, which is conducted at the plant, and the

14


formal instruction segment, which is provided by area commun-ity colleges. The staff coordinates the on-the-job training on theplant floor to ensure that apprentices make the proper rotationamong the plant's different departments and equipment. Thestaff also conducts select on-site training, such as classroom orvideo instruction, that may be required by the central appren-ticeship training staff during the on-the-job training segment.Additionally, the plant training staff monitors the formal instruc-tion segment to ensure that apprentices attend and satisfactorilycomp/Pte the appropriate courses. The Apprenticeship Programat the plant is guided by the plant joint apprenticeship subcom-mittee.

Target Groups. Within the Management and TechnicalTraining Department, the Technical Training Section providestraining to Ford's approximately 8,000 manufacturing, engineer-ing, and other technical professionals (some courses are attendedby product engineers) and its approximately 19,000 skilled(journeyman-level) trade workers. Of the eighty-eight genericcourses offered by technical training, approximately fifty-fourare for manufacturing, engineering, and other technical pro-fessionals, and thirty-four are for skilled trade workers. Thecourses for manufacturing, engineering, and other technical pro-fessionals involve all functions associated with manufacturingas well as the various aspects of industrial, plant, process, andmaintenance engineering. The courses for skill. l trade workerscover troubleshooting, microcomputers, robot maintenance, andvariable-speed motors. Courses are designed and developedas a result of a needs analysis conducted by the training staffor in response to requests received from division or plant train-ing coordinators. Following discussions with the training coor-dinators and, in some cases, plant visits, training staff membersdetermine whether the proposed training addresses a problemor need of several divisions or plants; if so, it is developed.

The technical training staff employs classroom instruc-tion, computer-based training (there are seventy such trainingsystems), and interactive videodisc systems (there are fifteenvideodisc systems) in its various courseware. Classroom instruc-

150

A INOMINIF


tion is used primarily for subject matter that experiences rapidchanges (and therefore does not justify the high developmentcosts for computer-based or interactive training programs) orthat is relatively basic in nature. Classroom instruction is usedfrequently for engineers. The self-paced computer-based instruc-tion with interactive video tends to be most commonly used fortraining skilled trade workers, although it is also used to trainengineering and technical professionals in computer applications.Although much of the training is conducted on-site at the HumanResources Development Center, some training is delivered off-site through the purchase of computer-based and interactivevideodisc materials from the Human Resources DevelopmentCenter, training consultants, or educational institutions.

At the Sheldon Road plant, technical training primarilyinvolves the technical professional and skilled tradesman. Gen-erally, training is developed in response to an issue or oppor-tunity uncovered by the plant's joint training committee or theplant training staff. The subject matter frequently involves newequipment, new hire and job rotation, or remedial and job skillupdate training. With new equipment, the plant trainers workclosely with the original equipment manufacturers to developtraining for the equipment prior to its installation date. Theoriginal equipment manufacturer may be required to providetra;vs;iig either at the manufacturer's plant or the Sheldon Roadplant, or the plant training staff may decide to conduct the train-ing on-site. In some cases, the training staffmay visit the originalequipment manufacturer's plant to develop a video course onthe operation and maintenance of the new equipment. The planttraining staff is also in the process of enhancing the new hireand job rotation training. By the end of 1989, the staffwill havecompleted an effort to establish training requirements and ob-jectives for all of the plant's job classifications. Finally, the train-ing staff is involved with remedial or skill update training inresponse to specific production or equipment operation prob-lems. Several members of the training committee and subcom-mittees and several line employees have assisted the trainingstaff by developing training programs to address specific operat-ing problems in their respective areas of responsibility.


To deliver the training, the plant training staff employsdassroom and videotape instruction and interactive videodisc.Videotape is the preferred medium and the one most widelyused at the plant. The use of interactive videodisc is relativelynew and is currently limited to seven or eight generic trainingprograms encompassing electronics, hydraulics, and micropro-cessors. Training may be accomplished in-house or by an out-side provider at the plant or at an off-site facility.

Linkages. There is only an indirect link between technicaland other types of training at Ford. Management and super-visory training, although not entirely technical, does emphasizethe need tor greater teamwork and involvement by all employees.To maximize this involvement, each employee must be fullytrained in a broadly based task area. Additionally, with deci-sion making now being required at lower levels in the organiza-tion, employees must have the requisite decision - making skills.Management and supervisory training reinforces this new par-ticipatory culture and emphasizes the fact that line managersare also responsible for ensuring that their employees are pro-perly trained.

Ford's Apprenticeship Program creates a direct link be-tween technical training and the human resource function. Theprogram's structure and content are negotiated and agreed uponby mangement and union representatives. In addition, progressthrough and completion of apprenticeship training directly affectspromotion, compensation, and other human resource functions.


Ford believes that to achieve its strategic goals in eachof its three operation areas, it must have a dedicated, skilled,and motivated work force. The company believes that throughparticipatory management and employee involvement, it candevelop such a work force and maximize the benefits availablefrom its skills, knowledge, and capabilities. Technical trainingdirectly supports the company's new culture by providing therange and depth of skills required for workplace participation.

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Ford is committed to both employee involvement and trainingas means of maintaining its successful performance.

The Technical Training Sections are the company leadersin the area of evaluation. All courses are evaluated at Level I(reaction questionnaire) and Level II (before and after ques-tions). Ten to fifteen courses are evaluated each year by an out-side training vendor at Level III (application to the job) andLevel IV for bottom-line results. Courses are not put on-lineuntil they have satisfied the validation criteria of 90/90, that is,until 90 percent of the participants achieve 90 percent of thecourse objectives.

Because of Ford's emphasis on process and continuousimprovements, the section has linked up with the InstructionalTechnology Department at Wayne State University. Candidatesin the master's and doctoral programs are employed part-timeto conduct course integr:cy evaluations on technical courses.

CHAPTER 6

Best Practicesin Technical Training:Integrated Systems

This chapter profiles five companies with training delivery sys-tems that have both centralized and decentralized features. Eachof these companies has a strong central training function, buteach one's various divisions also play a large role in training.In all five companies, training is conducted at both the corporateand division levels. The companies discussed in this chapterare FMC Corporation, Frito-Lay, Inc., Merck PharmaceuticalManufacturing Division, Motorola, and Northern Telecom.

FMC Corporation

FMC Corporation is one of the world's leading producersof machinery and chemicals for industry, government, andagriculture. The company participates on a worldwide basis inselected segments of five broad markets: industrial chemicals,precious metals, defense systems, performance chemicals, andmachinery and equipment.

In 1988, FMC reported sales of $3.3 billion, an increaseof 5 percent from 1987. Reported net income declined between1987 and 1988. However, excluding the gain from the publicissuance of 7.5 million shares of FMC Gold Company stock in1987, net income actually rose to $129 million in 1988 from$96 million in 1987 a 34 percent jump. This dramatic increase

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was the result of higher earnings from FMC's chemical an'_precious metal businesses combined with lower interest expense.

In 1988, FMC also achieved an annual return on invest-ment of more than 15 percent for the fifth straight year. Thecompany's continued success reflects a concerted effort to im-prove the performance of its businesses, to reduce workingcapital, and to redirect capital toward high-return uses.

The company likewise focused tin careful deployment ofFMC's financial assets. Its pension plan restructuring, for ex-ample, returned more than $340 million and 11.3 million sharesof FMC stock to the corporation. FMC has also pursued innova-tive financial strategies, including the public offering of FMCGold Company stock, the first major Dutch auction self-tender,and the 1986 recapitalization.

The repatriation of excess cash from foreign subsidiariesand cash generated from operations allowed FMC to reduce debtand trade receivables financing by more than $170 million in1988. Since the company's May 1986 recapitalization, FMC hasreduced debt and other obligations by more than $750 million,or nearly 40 percent of the debt associated with the recapitaliza-tion. At the end of 1988, total debt stood at $1.5 billion. Prin-cipal payments will continue to reduce this debt, although nosignificant payments are required until mid-1992.

At the same time, capital expenditures increased 19 per-cent to $186 million in 1988. Expansion of the company's chemi-cal and precious metal operations and the installation of newmanufacturing systems in its defense and machinery businessesaccounted for the increased spending. In 1989 capital outlayswere projected to rise again, to $275 million, as FMC continuedto pursue new investment opportunities.

Research and development expenditures for 1988 rose 9percent to $144 million and were focused on developing andtesting new agricultural chemicals and improving FMC's defensesystem capabilities. FMC spends nearly twice as much as theaverage industrial company on research and development andbelieves that such investment will generate new and innovativeproducts for the company. Fu ding was expected to rise slightlyin 1989.

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Integrated Systems 137

FMC employs approximately 24,000 people in its eighty-eight manufacturing facilities and mines, which are located intwenty-four states and fourteen foreign countries.

The company's industrial chemicals businesses manufac-ture a wide variccy of chemicals, including soda ash, phosphates,hydrogen peroxide, and lithium. Major customers include deter-gent, glass, and paper producers as well as food processors andother chemical companies.

FMC's precious metal business is dominated by its 89 per-cent stake in FMC Gold Company, which mines gold and silverand ranks first among major North American gold companiesin return on investment and among the leaders in net income.

FMC's defense system business develops, manufactures,and supplies ground combat vehicles and naval weapons systemsto the armed forces of the United States and other free worldgovernments.

FMC's performance chemicals business develops, manu-factures, and markets proprietary specialty chemicals for theagricultural, food, and pharmaceutical industries.

Machinery and equipment businesses provide specializedmachinery to the food, petroleum, and material-handling in-dustries and to municipalities. Most of these businesses com-mand strong positions in specialized markets.

Strategic Goals

Driving the strategy of each business is one overridinggoal: "becoming our customers' most valued supplier." In theyears since FMC adopted this goal, the corporation has seenits employees steadly gain a deeper insight into the needs ofits customers, the strategies of its businesses, and the demandsof a highly competitive global market.

FMC's major challenge for the future will be to continueoperating its businesses efficiently maintaining high returnsand paying off debt while at the same time generating sufficientnew opportunities to bring investments more in line with FMC'scash-generating capabilities.

To address that challenge, FMC is stepping up efforts to

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identify opportunities that meet its high-return requirements andoffer a sustainable competitive advantage in businesses it under-stands. The company is building on its strengths: strong marketshares, low-cost positions, strong relationships with key cus-tomers, technical and financial expertise, worldwide presence,capable and experienced management, and dedicated employees.

Training Structure

Organization. Technical training at FMC is organized ontwo levels: corporate and field. At the corporate level, four areasof focus exist within their own functions: manufacturing, in-formation resources, finance, and engineering. All are staffedby field-experienced employees with successful records of lineachievement. They work with FMC organizations around theworld. At the field level, FMC groups and divisions tap thecorporate-based functional training as well as design their owntechnical programs in response to needs assessments.

Functional-based technical training is supported by theCorporate Training and Development Department, which islocated at FMC world headquarters in Chicago, Illinois. Thisdepartment is one of the human resource functions. CorporateTraining and Development focuses primarily on nontechnicaltraining and a full range of employee and organization develop-ment activities. The department also acts as an internal con-sultant to the technical training developers at both the field andcorporate levels.

Manufacturing technical training provided from corporateis designed or selected by a team of managers who rotate intothe corporate role to provide leadership and innovation. Theteam addresses such topics as quality, safety, manufacturingresource planning, and statistical process control. The depart-ment also maintains a video and computer-based learning li-brary, stocked by contracted vendors who provide both cus-tomized and off-the-shelf packages.

Information systems technical training provides softwaretraining by means of programs that are in general use throughoutthe company. The staffs expertise in systems design and software

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applications enables them to consult corporationwide on bothsoftware and hardware issues.

Engineering and finance focus on continuing educationmore than on skill-based technical training, although both areaddressed in their activities. The Corporate Finance Depart-ment provides training for both financial and nonfinancial mana-gers. The Central Engineering Laboratory, a corporate functionbased in Santa Clara, California, ensures state-of-the-art engi-neering capabilities through its consulting and technical trainingefforts. Engineers and staff specialists serve as trainers in morethan thirty courses and custom design courses as well.

The Corporate Training and Development Departmenttakes both a reactive and proactive stance. It is reactive in thesense that it responds to requests from divisions for assistancewith needs assessments; special training requirements, such asforeign language training; and identification of resources thatcan be used when establishing new divisional training. Thedepartment also acts as a training clearinghouse for the entirecorporation. It maintains libraries of generic training resourcesand makes them available to all divisions. In addition, it tracksall training completed at the divisional level and provides datato other divisions with similar training needs.

The Corporate Training Development Department's pro-active stance permits its team to design and develop training,career development programs, and on-the-job training programson macro issues that extend beyond specific division or groupoperations. Courses may be developed in technical or nontech-nical areas on the basis of the department's own initiative orin response to a requirement from the corporation's divisionsor groups.

In its capacity as consultant to all divisions and groupswithin the corporation, the Corporate Training and Develop-ment Department lends considerable expertise in all areas oftraining. This expertise is particularly important because mostdivisions do not have fully staffed training functions.

Of all of FMC's groups, only Defense Systems and Petro-leum Equipment have well-defined, fully staffed traLing anddevelopment functions. Both groups do most of their own skill-

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based training as well as long-range planning for training devel-opment and implementation.

Within these two groups, technical training is importantas a coordinator and overseer of employee training. For exam-ple, within the Petroleum Equipment group, training is cen-tralized for design and development and for train-the-trainerinstruction. Delivery, however, is decentralized to the regions(Singapore, London, and Houston).

Staffing. Like many corporations, FMC utilizes a rela-tively small number of trainers both at headquarters and its divi-sions. (The Corporate Training and Development Departmentis staffed with four full-time employees.) The corporation relieson some outside contractors but predominantly on operationspersonnel to provide much of the training expertise. Staffmem-bers at headquarters and lower organizational levels coordinatecourses that are designed and developed by vendors. They alsoserve as design specialists for courses developed in-house. Whilemany of FMC's divisions rely on headquarters to provide muchof their training, those divisions with fully staffed training func-tions design and develop in-house courses through the jointefforts of a trainer and a subject matter expert.

Technical training is predominately delivered in the field.Courses that are designed and developed centrally are deliveredlocally upon request. At the division level, courses are frequentlydelivered by line mangers because they are most credible to thelearners and have experience with the corporation's productsand operations.

In addition to in-house training, FMC encourages all ofits employees to seek outside professional development by pro-viding 85 percent reimbursement for all coursework and 100percent reimbursement for degree programs.

Target Groups. FMC is diverse in nature. Training is ateam effort shared by manager and employee. Training for targetgroups varies according to the nature of the operation as wellas individual needs. For example, the Defense Systems Groupconcentrates on technical training and professional development

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opportunities for technicians and technical profc 3nals. Thisenables technical employees to be up-to-date on new operationsand procedures, and it fulfills the group's contractual require-ments for training. Technical training within the PetroleumEquipment Group, however, is reserved for setup, operations,and maintenance personnel, who must keep abreast of specificprocesses and procedures as they relate to operations. Technicalprofessionals in this group receive more training in no:,technicalareas, such as interpersonal skills and management development.

Exceptions to shifting the training emphasis according tooperational requirements can be found in several key areas.Safety, hazard communication, and other kinds of training man-dated by regulation or contract are conducted with all affectedpersonnel as required. Additionally, headquarters occasionallyrequires some special types of training for all company personnel.

Linkages. FMC previously separated its various types oftraining. Increased emphasis on customer service coupled withproduct knowledge has resulted in stronger links between mar-keting, customer service, interpersonal skills, and managementdevelopment. These linkages are important for technical pro-fessionals as well as customer-interface employees. There is astrong link between training and the company's performancemanagement process, which identifies specific employee weak-nesses that training can address.


Technical training at FMC directly supports the corpora-tion's strategies by providing its employees with the skills to leadthe competition in the international marketplace. As FMC con-tinues its streamlining effort by restructuring and introducingnew technologies to increase productivity, technical training isincreasingly critical to work force development.

Technical training also plays an important role in sup-porting FMC's goal of identifying and developing new businessopportunities. New and incumbent workers must be trained inthe venture's operations and procedures.

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The third way in which technical training supports FMC'sstrategic goals is by providing operational skills and productknowledge to all employees. These skills and knowledge are ofparticular importance when employees are dealing with custom-ers, identifying potential new markets, and responding to chal-lenges posed by FMC's competitors.

Frito-Lay/PepsiCo Inc.

Frito-Lay, Inc., is a wholly owned subsidiary of PepsiCo,Inc., which is a large food and beverage company operatingin the soft drink, restaurant, and snack food business areas. Pep-siCo operates more than 1,000 bottling plants, which processproducts for the domestic and international markets. PepsiCobrands represent one-third of the U.S. soft drink market. Inits restaurant business area, PepsiCo operates the largest res-taurant system in the world, which consists of the Kentucky FriedChicken, Pizza Hut, and Taco Bell chains. Within PepsiCo'ssnack food business area, Frito-Lay is the nation's largest manu-facturer and marketer of salty snacks. During 1987, PepsiCoearned $594.8 million in net income (an increase of 30 percentover 1986) on sales of $11.5 billion (an increase of 26 percent).PepsiCo employs approximately 225,000 people worldwide.

Overall, PepsiCo's three business areas achieved recordsales and operating profits during 1987. In each area, PepsiCo'sbusinesses successfully increased sales volumes and gained mar-ket share by capitalizing on excellent brand recognition and thecompany's comprehensive domestic and international sales anddistribution network. Moreover, each of PepsiCo's businessescontinued to reduce costs and increase operating efficiencies ina major companywide effort to improve profit margins.

PepsiCo's margins were also enhanced by the 1986 ac-quisition of Kentucky Fried Chicken, MEI Corporation, andSeven-Up International. Because these three companies wereacquired for their financial strengths and potential synergies,they were quickly assimilated into PepsiCo's operations. As aresult, the companies began contributing immediately to Pep-siCo's total earnings.

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Expansion in sales volume and market share can also beattributed to the nature of PepsiCo's products and to the habitsof its consumers. Although popular with all ages, the company'sproducts tend to be most heavily consumed by teenagers andyoung adults. The increased consumption of snack foods and softdrinks began with the baby-boom generation and, to the benefitof the company, has continued as that generation has aged. Pep-siCo also has targeted the baby-boomers' changing life-style witha network of restaurants that offer fast foods and carry-out 'ser-vice. These consumption habits are continuing with a newgeneration of soft drink, snack food, and fast-food consumers.

PepsiCo has also been successful in targeting specific con-sumers with existing products and product variations. For ex-ample, the company promotes Diet Pepsi to its older weight-conscious customers and regular Pepsi to its younger customers.It also has responded to regional tastes by introducing varia-tions of existing products, such as Cajun spice flavored Rufflespotato chips. Because of the vitality of its products, PepsiCohas been able to develop line extensions of existing products,which require less investment and involve lower risks.

Frito-Lay and PepsiCo Foods International make up Pep-siCo's snack food business area. Frito-Lay employs approxi-mately 26,000 people (10,000 of whom are involved in sales),has numerous manufacturing facilities around the country, andover 1,000 distribution centers. During 1987, Frito-Lay achievedtotal sales of $3.7 billion, which was an increase of 6 percentover the previous year and the nineteenth consecutive year ofincreased sales. Its major krands experienced significant in-creases in sales volume during 1987, and four of its brands,Doritos tortilla chips, Lay's and Ruffles potato chips, and Fritoscorn chips were in the top ten sales volume for all dry food brandssold in U.S. food stores.

As with PepsiCo, a great deal of Frito-Lay's success is at-tributable to a general changing of life-style and consumptionhabits in the United States. Today's consumers actually eat moresalty snacks than did consumers of the same age a decade ago.In fact, today's forty-year-old consumes approximately fourpounds more salty food snacks annually than did his or her

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counterpart a decade ago. This trend began with the baby-boomgeneration and has continued as that generation has aged. Newgenerations, especially today's teenagers, who are the largest con-sumers of snack foods, actually eat more snack foods than didany previous generation of teens. Overall, the U.S. per capitaconsumption of salty snack foods is twelve pounds per year.

Frito-Lay's comprehensive and highly efficient manufac-turing, sales, and distribution networks have also contributedto its strong performance. During 1987, it actually reducedoperating expenses by $150 million through increased efficien-cy and productivity. New equipment, such as the hand-heldcomputer that the Frito-Lay sales force uses to track orders,monitor product sales, and evaluate sales promotions, was devel-oped to reduce paperwork and associated costs. This is a criticalfactor with Frito-Lay's 10,000-person sales force, which services400,000 accounts. Frito-Lay's sales force also stocks the snackfoods directly on supermarket shelves (where most salty snackfoods are sold), enabling the company to maintain very closeinventory control and to ensure product freshness. It also reducessupermarkets' labor costs, which together with high sales volumesmakes Frito-Lay snacks some of the most profitable dry foodbrands sold in supermarkets.

As a result of its efficient distribution network, aggressivemarketing programs, and extremely popular food products,Frito-Lay has achieved annual product sales volume increasesduring each of the last five years.

Strategic Goals

PepsiCo's overall strategy is to retain its leadership positionin soft drinks, snack foods, and restaurants. It intends to con-centrate its managerial and financial resources on expandingproduct lines within these three rapidly growing business areas.The company also intends to pursue growth through carefullyselected acquisitions related to its three business areas.

To maintain its leadership in the snack food business area,Frito-Lay will capitalize on Americans' increased consumptionof snack foods. It will increase market share by segmenting its

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markets and then targeting specific products or product varia-tions toward each market segment. Its primary emphasis will beto provide quality snacks in flavors that all consumers will enjoy.

Frito-Lay will also concentrate on improving productivityand decreasing costs through a continuing review of Ks totaloperations to identify areas that can be made m-...-re efficient.Additionally, through the Methods Improvement Program, thecompany will encourage its employees to suggest procedures andtechniques that will increase productivity or improve productquality.

Training Structure

Organization. At Frito-Lay, technical training is con-ducted by two major groups: a central training staff, which islocated at Frito-Lay's headquarters, and individual trainingstaffs, which are located on-site at the company's various plantsand distribution facilities. The central training staff is generallyresponsible for designing and developing training courses forthe individual sites and for overall administration of the technicaltraining function. Each of Frito-Lay's forty plants has on-sitetraining staffs that conduct the actual training and evaluate thetraining courses. The company's distribution facilities also con-duct some training; however, the major emphasis is with theplants. The central training staff reports through the HumanResources Department, whereas the individual on-site trainingstaffs report through their respective plant managers. Althoughthere is no direct reporting structure between the central andon-site trainers, they do work closely during the needs analysisand design and development phases. The on-site trainers alsoprovide continual feedback to the central staff concerning theeffectiveness of the training in meeting its objectives. In addi-tion to its design and development responsibilities, the centralstaff is available to assist individual sites in identifying and resolv-ing training problems.

Frito-Lay's training structure (centrally designed, devel-oped, and administered but decentrally delivered) is not con-sidered typical of the food-processing industry, in which .nost

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companies are small. Training in the smaller companies is usu-ally informal, consisting of casual on-the-job training. Frito-Lay'straining structure, however, best satisfies its needs and providesthree major benefits. First, central control, design, and develop-ment ensures that training will support the corporate strategicgoals. With decentralized control and development, training pro-gram: tend to be less focused on the company's central objec-tives and policies. Second, centralized design and developmentincreases training efficiency by reducing staff duplication, whileat the same time, decentralized delivery allows the various in-dividual sites to customize courses to meet specific needs. De-centralized delivery is consistent with Frito-Lay's Self-RelianceProgram, which encourages increased autonomy at the com-pany's plants. Third, decentralized delivery of training at theplant level enables the target groups to receive a greater shareof hands-on training and to reduce the amount of time requiredaway from the job for training.

Staffing. The central training staff consists of seventeermembers, each selected for his or her background in adult educa-tion and experience in training design and development. Staffmembers include professional engineers and managers withdirect experience in food processing and manufacturing. Ap-proximately 50 percent of the present central trainers obtainedtraining from other Frito -Lay operations, while the other trainerswere hired from outsLie the company. Each of the trainers hasbeen employed at Frito-Lay for more than six years.

Each of the individual plants and distribution facilitieshas a training staff that ranges from one to four members. De-pending on the function of the individual facility, the staffs con-duct training programs in the areas of manufacturing, processing,maintenance, distribution, and marketing. The greatest numberof on-site trainers (approximately 175) conduct manufacturing,processing, and maintenance training because Frito-Lay's great-est emphasis is in these areas. Site trainers are professionalsand supervisors who are selected for their knowledge of the pro-cesses and operations in which training is required. The staffselection process begins at the plant level, where individuals are


nominated on the basis of performance and knowledge. Eachcandidate's name and background data are then submitted tocentral training, which reviews the candidate's background todetermine suitability. Upon selection, the candidate is enrolledin central training's Instructors' Certification Workshop (train-the-trainer program). The candidate is next required to makea presentation before a jury and then, if approved, becomes cer-tified and is transferred to his or her plant's training department.

Target Groups. At Frito-Lay, technical professionals,technicians, and craft workers receive technical training. Thetechnical professionals located at individual plants and facilitiesreceive the least amount of training because they are primarilyengineers and managers with background knowledge and experi-ence. Their training consists of an initial operation overviewfollowed by periodic new equipment or procedure "miliariza-tion. Technical professionals located at Frito-Lay's headquartersalso receive some technical training. Because they are primarilyresearchers and scientists engaged in complex technologies,however, their technical training consists of professional develop-ment in their respective fields and is normally provided by majoruniversities. Training for headquarters-based technical profes-sionals is administered by the research department separatelyfrom other technical training.

IVI.,st of Frito-Lay's technical training involves techniciansand craft workers in food-processing and manufacturing equip-ment operations. This area receh es the greatest training em-phasis because it involves the largest group of employees andhas the greatest potential impact on product quality and overallproductivity. Both target groups receive training in equipmentsetup, operation, and maintenance (as well as safety and hazardcommunication) from the training staff located at their assignedplant. Training includes some classroom instruction, but thegreatest emphasis is on on-the-job training to maximize hands-on experience with the equipment. Training is provided to tech-nicians and craft workers when they are initially employed, whennew equipment is installed or new procedures are implemented,and when actual performance varies from preestablished per-

1GC


formance standards. Tc monitor equipment operations, .to-LLy's senior and plant managers, with assistance from technicaltrainers, have established job performance standards for equip-ment operators. In each plant, a computer that interfaces withindividual equipment gathers equipment operational and pro-duction data and compares them with the equipment operator'sperformance standards. The results are used by the plant's tech-nical trainers to evaluate the effectiveness of existing trainingprograms and to identify new training requirements. The planttrainers then convey this data to the central trainers who modifythe courseware as necessary or develop new programs if re-quired. This system enables the technLal training staff to targetremedial training more accurately toward specific deficiencies.

Although receiving less emphasis, technical training alsosupports the technicians and craft workers located at Frito-Lay'sdistribution and marketing facilities. Training at the distribu-tion facilities primarily involves the operation (and safety) andmaintenance of material-handling equipment. Training at themarketing facilities involves the maintenance of delivery vehicles.Training is usually provided upon initial employment and when-ever new equipment is purchased or installed. Training is alsoprovided to address specific operating or maintenance problems.Similar to training in thz plants, the greatest emphasis is onhands-on training, although some classroom instruction is alsoused.

Linkages. Because technical training is considered socritical to Frito-Lay's success, it is conducted separately andtherefore is not linked to other training.

Frito-Lay is currently experimenting with a variation ofJapanese management known as "high performance systems."Under this program, all workers are receiving an orientation,presented by technical trainers, in food-processing and produc-tion standards. Following completion of this orientation pro-gram, workers will be empowered to correct any processes thatdo not meet the standards.

There is a reverse linkage between technical training andthe human resource function. Technical training assists in devel-

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oping job performance standards for equipment operators. Thesestandards are then used as the basis for appraisal and compen-sation. The computer interface with production equipment pro-vides the data to determine performance variations.


At Frito-Lay, technical training is directly involved in thecorporate strategic goal and pk.-ming development process. Thecompany generally establishes its strategic goals from three tofive years in advance. These goals include overall corporatedirection as well as more specific manufacturing and produc-tion objectives and standards. During the actual planning andstrategy session, a representative from central training providesinput and feedback concerning the potential impact of the pro-posed objectives and standardson training and the work force.Central training obtains the feedback data through continualinteraction with the site trainers. Once the strategic goals areapproved and implemented, central training develops corres-ponding training goals and objectives, which provide the param-eters for training.

Most of the training curricula developed by central train-ing for the individual plants directly support a corporate strategicgoal or production objective or standard. For example, currentplant training is primarily focused on increasing equipmentoperator skills and knowledge levels to achieve the goal of in-creasing productivity and improving product quality. Currenttraining also promotes safety, which helps reduce equipmentdowntime and time lost from the job. Training further supportsthe corporate strategy of introducing new product variations byproviding employees with the skills necessary to operate theequipment that produces the product.

Merck Pharmaceutical Manufacturing/Merck & Company, Inc.

Merck & Company, Inc., is an international, research-intensive health products company focusing on the discovery,


development, manufacture, and sale of human and animal healthand specialty chemicals.

Merck is structured into the following major divisions:Merck Pharmaceutical Manufacturing Division, Merck Sharp& Dohme Division, Merck Sharp & Dohme International Divi-sion, Merck Sharp & Dohme Chemical Manufacturing Divi-sion, Merck Sharp & Dohme AGVET Division, Merck Sharp& Dohme Research Laboratories Division, Calgon Vestal Lab-oratories Division, Calgon Water Management Division, andKelco Division. The company also includes Hubbard Farms,Inc., and its two operating units, Spafas, Inc., and British UnitedTurkey, Ltd.

During 1988, Merck continued its strong performancewith sales of $5.9 billion (an increase of 17 percent over 1987sales) and net income of $1.2 billion (an increase of 33 percent).Overall, the company has eighteen 'Ants in the United States,twenty-nine plants in seventeen other countries, and sixteenresearch facilities, seven or which are located in the UnitedStates. Merck employs 32,000 people.

Merck contributed significantly to global health in 1988with the increased acceptance of its wide range of existing phar-maceuticals and the introduction of several new discoveries.Significant sales gains were achieved by Vasotec, which is usedto treat high blood pressure and congestive heart failure; Pep-cid, which is used to manage peptic ulcers; Noroxin and Pri-maxin, which are anti-infection medications; and RecombixaxHB, the first genetically engineered vaccine for hepatitis licensedfor human use. In 1988, Merck also introduced Prinivil, a bloodpressure product in the same medication class in which Vasotecis dominant.

In Septe :fiber 1987, Merck introduced Mevacor, a drugto reduce cholesterol levels. In its first twelve months on the U.S.market, it achieved higher sales than any other prescriptionmedication ever achieved in a similar period. Merck also in-itiated its plan to distribute free to Third World countries Meoti-zan, a drug for the treatment of river blindness, a parasiticdisease affecting people in certain impoverished tropical areas.The company chose to donate the drug in order to accelerate


the treatment process rather than to market the product forprofit.

Overall, in 1988, Merck had fifteen drugs for humanhealth in nine therapeutic classes that achieved worldwide salesof $100 million. This was an increase from thirteen drugs ineight classes in 1987. Also in 1988, the company's highly suc-cessful animal health drug Ivermectin garnered $100 millionin sales for the third consecutive year.

In addition to its highly successful products, Merck &Company's strong performance can be attributed to judiciousasset management, productivity improvements through the im-plementation of new technologies, and continual monitoring ofcosts to ensure that they increase more slowly than correspond-ing revenues. Merck has ensured that all of its operations re-main lean and competitive. Since the company also maintainssignificant operations outside the United States, the strengthen-ing of foreign currencies relative to the dollar has also contributedto the company's strong performance.

To maintain its leadership in the pharmaceuticals in-dustry, Merck has invested extensively in research and develop-ment. Approximately 3,600 people are involved in pharmaceuti-cal chemical research in its facilities located throughout theworld. In 1988, Merck allocated $669 million for research anddevelopment, up 15 percent from 1987 funding levels. In 1989,Merck planned to invest $755 million in research and develop-ment. Within the pharmaceutical industry, Merck's 1988 re-search spending represented more than 10 percent of the esti-mated total for the U.S. industry. Approximately 75 percentof Merck's research is carried out in the United States.

Due to the nature of business, Merck depends heavilyon the creativity and productivity of its employees for its con-tinued success. As a result, the company strives to provide awork environment that encourages excellence and achievement.The company is also committed to continual training and devel-opment as a means of providing the skills and technical know-ledge necessary for its cmplcyees to perform at the highest levels.Merck has developed a multiyear plan that includes providingits managers and supervisors with the skills they need to manage

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the work force effectively. Some of the topics covered in the planinclude how to select the best people, how to coach, how to pro-vide appropriate rewards for outstanding performance, and howto foster open, interactive communication among departments.A more advanced series of development programs has beendesigned for company executives. These programs include anumber of advanced management seminars that are conductedboth in the United States and at Oxford University in England.

Merck Pharmaceutical Manufacturing Division (MPMD)was established on January 1, 1989, to r -oduce animal andhuman health products for Merck marketing divisions world-wide. Using active ingredients produced in bulk by the MerckChemical Manufacturing Division, MPMD formulates andpackages drugs in a variety of dosage forms, as well as the fullrange of Merck vaccines.

Comprised of 5,400 people and twenty-one manufactur-ing facilities in fourteen countries, MPM was formed by con-solidating manufacturing activities that formerly operatedseparately in the United States, Canada, and elsewhere aroundthe world.

Merck Sharp & Dohme Division, Merck's human phar-maceuticals division, is the largest marketer of prescriptionmedication in the United States, providing more than 150 pre-scription pharmaceuticals and vaccines. It has fifteen regionalsales offices and fifteen distribution branches in the UnitedStates.

Strategic Goals

Merck & Company's primary strategy is to provide pa-tients, physicians, and society with innovative pharmaceuticaland chemical products of superior value and representing thelatest findings in human and animal medical research and agri-cultural disease treatment. Merck intends to capitalize on thesignificant potential of its existing product lines and on new pro-ducts that will continue to flow from its research and develop-ment activities. The company's research operations will play acritical role, with new discoveries and developments, in com-


pensating for sales losses from older drugs whose patents willexpire. Merck also expects that within the next ten years, itsresearch operations will discover and develop new products inentirely new therapy classes that will serve new categories ofpatients. In addition to sustaining growth through the 1/4..cpan-sion of existing product lines and the discovery of new products,Merck will intensify its efforts to obtain promising new productsand discoveries developed outside the company through acquisi-tion, licensing agreements, andjoint ventures. Finally, the com-pany intends to continue its campaign to reduce costs andto improve productivity through the implementation of new tech-nologies.

Training Structure

Within Merck & Company, general "soft skills" trainingfor all its divisions and functions is controlled centrally by Cor-porate Human Resources. The company's technical trainingefforts are somewhat more decentralized to the division levelbecause the divisions are involved in different operations thathave unique training requirements. In addition to the CorporateTechnical Training Department, each division has its own tech-nical training structure and program that responds to the needsof that division's operations. The technical training functiondiscussed in this case study is limited to the Merck Pharma-ceutical Manufacturing division.

Organilation. Within Merck Pharmaceutical Manufac-turing, technical training is generally designed and developedcentrally but delivered decentrally. Technical training has twosubfunctions: Good Manufacturing Practices and an appren-ticeship program. Good Manufacturing Practices are detailedprocedures concerning the manufacture, processing, packaging,and distribution of drug products. They are mandated by com-pany policies and U.S. Food and Drug Administration regula-tions. Technical training directly supports Good ManufacturingPractices by providing the requisite skills required for employ-ees to perform under each of the four functions. The division's

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apprenticeship program hr. olves extensive on-the-job trainingin the areas of operations and maintenance.

Because the requirements for quality products and forskilled employees are so critical, line managers play a very ac-tive role in technical training. Department managers actuallyhave the responsibility for ensuring that each employee assignedto their department is properly trained in both specific job skillsand :n Good Manufacturing Practices required for the particularjob. Each manager continually monitors the performance of alldepartment employees and, with the assistance of the technicaltraining staff, determines whether additional training is required.To assist with this evaluation, line mangers also review discrep-ancy reports generated by quality control experts and also con-tinually monitor the manufacturing, processing, and packagingoperations.

Although most training is presented decentrally by eitherthe technical training staff or certified trainers, line managersalso assume some responsibility for actual training delivery.Managers most frequently present safety training, which istailored to accommodate their department's specific function andequipment. Moreover, line managers may elect to present someskill-building training through either coaching or other on-the-job training.

Staffing. Merck's corporate technical training staff con-sists of one training manager and five staff members for the GoodManufacturing Practices technical skills training area and fourstaff members in the apprenticeship training area. A represen-tative of the technical training staff (usually a subject matterexpert) is also located at each of three satellite plants (in Virginia,North Carolina, and Puerto Rico) to coordinate training. Staffmembers are selected for their technical expertise and their training potential. Prior to actual involvement in the training pro-cess, each new staff member is enrolled in extensive trainingthat consists of the following: train-the-trainer programs, con-ducted by the American Management Association, competency-based training design, development, and evaluation, presentedby Educational Systems of the Future, and Good Manufactur-


ing Practices overview, provided by the Center for ProfessionalAdvancement. Following completion of the programs, each at-tendee receives a formal evaluation and critique of his or hernewly acquired skiils and knowledge based on criterion-refer-enced training standards. If a participant does not meet the stan-dards, he or she may repeat the programs. All trainers alsoreceive an average of two weeks of skill update training annually.

The Merck Pharmaceutical Manufacturing Division's staffcan also request assistance from the Merck Corporate TechnicalSkills Training Group. This group, which is located at the head-quarters facility, is available upon request to all divisions to pro-vide specialized technical training expertise to address specificproblems. It also has resources to assist in developing trainingneeds analyses and courses. In addition, the training staff canborrow personnel from other training areas (including nontech-nical training functions) on an as-needed basis under a com-panywide training staff sharing system. This system allows eachtraining function within the company to develop specializedtraining expertise and share that expertise with others throughoutthe organization, thereby reducing costly duplication of effort.

Outside training consultants are also used on occasion toassist in conducting training needs analysis and to design anddevelop courses. Almost all training delivery, however, is ac-complished by the technical training staff of certified trainerswithin the division. Approximately 10 percent of the trainingeffort is contracted out.

Generally, the Merck Pharmaceutical Manufacturingtraining staff conducts all needs analyses and designs and devel-ops training centrally for each of the division's plants. Trainingpresentation, however, is usually accomplished on-site at theplants (to minimize work disruption) by the central staff, a cer-tified trainer, or the on-site plant training representative. Onoccasion, the plant training representative may actually becomeinvolved with design and development in response to a train-ing need unique to that plant.

Target Groups. Technical training at Merck's facilitiesprimarily involves training technicians and craft workers en-


gaged in manufacturing and packaging operations and in equip-ment maintenance. Although there is an occasional trainingeffort involving technical professionals, most of their trainingis accomplished under a different training area. All manage-ment employees receive training conducted by the corporatehuman resource function. There are approximately 2,500 tech-nical employees within the four Merck plants in the UnitedStates.

The focal point of all operational and some maintenancetechnical training is Good Manufacturing Practices, which in-cludes pharmaceutical production and control, packaging andlabeling, and storage and distribution. Training is targetedtoward both update training and deficiency training. Updatetraining in both .manufacturing and packaging is modulated bycompany policy and U.S. Food and Drug Administration regula-tion and includes a review of all o, 'rational procedures. De-ficiency training covers specific problem areas isolated by qualitycontrol inspections. Workers also receive training whenevernewequipment or procedures are implemented or when they aretransferred to a new position (for example, from a capsule pack-aging line to a compressing process). On average, each employeereceives a minimum of two days of technical training per yearand two days of personal development instruction per year.

Although regulated by the U.S. Food and Drug Adminis-tration, most of the maintenance technical training is procedural,involving actual equipment maintenance performance. Asidefrom training mandated by the Good Manufacturing Practices,most training is either refresher, delivered when problems areidentified, or initial, delivered when new equipment is installed.

The apprenticeship program is primarily fornew employ-ees involved in operations or maintenance. It includes off -siteand on-site classroom instruction and on-the-job training forseveral job areas within manufacturing and packaging or equip-ment maintenance. The apprentice actually rotates throughseveral of the manufacturing and packaging production lines.

Training techniques and media vary widely, dependingon specific needs, and include classroom training, individualself-paced instruction, computer-assisted training with interac-tive videodisc, and on-the-job training.


Linkages. There are three areas of linkage between tech-nical and other types of training. First, safety training is com-bined with technical training when an employee is training inthe operation of equipment or in manufacturing processes. Safetyreinforcement training and periodic mandated training, suchas hearing conservation, are provided separately by the respec-tive department managers. Second, there is a link with othertraining through the training staff sharing system. In this system,training expertise is transferred among the different trainingfunctions. Finally, a less direct link exists between technical train-ing and management/supervisory training. Because line man-agers are responsible for ensuring that their personnel have therequired skills and training support to perform their jobs, Merckhas developed the Supervisor Training Enhancement Program.In addition to the typical supervisory skills curriculum, the pro-gram also emphasizes the necessity for technical training indeveloping and maintaining a skilled work force that helps thecompany achieve its goals.

The main area of linkage between technical training andother human resource functions is with the apprenticeship pro-gram, in which apprentices must attain a specified skill levelprior to promotion to journeyman status. Another link existsin the packaging operations area, in which workers receivebonuses for production exceeding the standard. Technical train-ing increases both skills and productivity levels, thus enablingworkers to achieve above-standard performance.


Technical training supports Merck & Company's strategicgoals by developing and maintaining a highly skilled and pro-ductive work force that produces high-quality products. Al-though not contributing directly to the company's primary goalof discovering and developing new products, the production ofquality pharmaceutical products is ofparamount concern to thecompany in maintaining its preeminence in the industry. Fur-thermore, a skilled and productive work force assists in reduc-ing production costs. The total commitment to training byMerck & Company has been established in corporate policies

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and is fully supported by all of management from ChairmanP. Roy Vagelos and top managers to first-line supervisors.

Motorola

Motorola, Inc., is one of the world's leading manufac-turers of electronic equipment, components, and systems serv-ing the U.S. and international markets. It is a leader in theproduction of cellular telephones, two-way mobile radios, pagers,and modems. The company is one of the few end-equipmentmanufacturers that also has extensive expertise in semiconduc-tor technology and government electronics. In 1987, Motorolaincreased its sales by 12 percent, to $6.7 billion, and its net in-come by 62 percent, to $308 million. The company employs97,700 people in plants and distribution and sales facilities lo-cated throughout the world.

Motorola is organized into seven major business sectorsthat, in turn, consist of approximately fifty groups and divisions.The following paragraphs summarize the products and majormarkets of each business sector.

The Communications Group designs and manufacturestwo-way radios, pagers, and other electronic communicationsystems. Its market areas include the construction, transporta-tion, telephone, mining, petroleum, health care, electric util-ity, and agricultural industries. It also targets the educationalsector and federal, state, and local governments.

The Semiconductor Products Group designs and producesa broad line of discrete semiconductors and integrated circuitsthat include microprocessors, microcomputers, and memorydevices. Its products serve the advanced systems needs of thecomputer, automotive, consumer, industrial, telecommunica-tions, and defense and other federal government markets.

The Information Systems Group provides all elements fordistributed data systems, from basic modems to integrated net-work management systems. This group was formed to combineand integrate the capabilities of CODEX Corporation andUniversal Data Systems, both previous Motorola acquisitions.

The Government Electronics Group specializes in re-search, development, and production of advanced electronics

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Integrated Systems 15S

equipment and systems for the U.S. Department of Defense,the National Aeronautics and Space Administration, and othergovernment agencies. The group also serves commercial usersand international customers.

The General Systems Group designs and manufacturescomputer-based cellular radiotelephone systems, mobile and por-table radiotelephones, microcomputer boards, and information-processing and -handling equipment for multiuser microcom-puter systems.

The Automotive and Industrial Electronics Group devel-ops and produces a variety of electronic modules, components,and power conversion equipment supporting the motor vehi-cle, industrial equipment, and major appliance industries.

Motorola's last group, New Enterprises, includes all activ-ities engaged in completely new business areas. Most of theseemerging growth, high-technology activities are in the areas ofsemiconductor equipment, hospital clinical information systems,factory automation, and real-time distributed computing systems.

Motorola's performance over the past ten years has beenexcellent, having achieved a 20 percent annual growth rate dur-ing each of those years. Its success has earned it the distinctionof being the most continuously successful electronic productmanufacturer in the United States. Founded in 1929 as a manu-facturer and marketer of automobile radios, the company hasbecome a producer of a variety ofelectronics products for theautomobile, data-processing, communication, aerospace, anddefense industries. Motorola attributes its success to the con-tinuity and stability of its management and to its steadfast policyof diversifying only into related lines of business.

By not diversifying outside the electronics and electronics-related business areas, Motorola has remained in an industrythat has become increasingly competitive. Both Japanese manu-facturers and U.S. corporations that have expanded into elec-tronics are increasing their presence in the industry. In fact,since 1982, three large Japanese corporations have become theleading worldwide manufacturers of semiconductor devices, sur-passing both Motorola and Texas Instru:nents. Other Motorolaproducts, from cellular telephones to computer modems, arealso under increasingly competitive pressure.


To remain successful in the electronics industry, Motorolaintends to rely heavily on its employees to provide its competitiveedge. The company considers its people a renewable resourceand has therefore developed a large training and education in-frastructure to keep its work force abreast of the latest productand manufacturing technologies. In fact, when other major U.S.companies resorted to massive employee layoffs in response toincreasing foreign competition, Motorola turned to training toupdate employee skills.

To benefit fully from its highly trained work force, Motor-ola has developed a participatory environment. The ParticipativeManagement Program encourages an informed and involvedwork force and a supportive and accessible management. Allnew employees receive twining in the participative concept andare informed of their responsibility to contribute. All employeesactually participate through work teams that are assigned pro-duction and profitability objectives. Each team then decides howbest to achieve the objectives, and teams exceeding the objec-tives receive a profit share.

Strategic Goals

Motorola's overall goal is to become the best in its classin terms of technology, products, manufacturing, service. mar-keting, and people. To accomplish this broad goal, Motorolahas established a number of objectives.

First, the company is pursuing a zero-defects programto improve product -panty. Its goals are to achieve a tenfoldincrease in quality within two years and a hundredfold increasewithin four years. By 1992, Motorola intends to achieve six sigma,which is a statistical term translating into a 99.9997 percentquality perfection rate. The company also works closely withsuppliers to ensure their compliance with strict quality control.In fact, suppliers ace required to enroll in Motorola's qualitycontrol training courses.

Second, Motorola is seeking to reduce cycle times for pro-duct development and shipment. For new products, the com-pany intends to reduce the time required to take a product from

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the concept stage through the design and manufacturing stages.Rapid product development is critical in the electronics industrybecause new technologies are being introduced constantly andrapidly. For existing products, the company intends to reducethe time it takes to deliver a product to the customer, horn orderplacement and production to delivery.

Third, Motorola is continuing to improve its responsive-ness to customers by accelerating delivery response times andby being more flexible in manufacturing specialized products.Because the company is itself a supplier of semiconductor de-vices, it recognizes the need to respond to its customers' needsfor customized computer chips.

Fourth, Motorola is continuing its ongoing program toreditee costs. It has developed a just-in-time inventory systemto help reduce the increasing costs ofmaintaining an inventory.The company also hopes to bee.cfit from new, more efficient pro-duction methods that will be developed by its work teams. Theteams have financial incentives to develop more productivetechniques within their manufacturing areas.

Training Structure

Organization. Generally, training is centrally controlled,coordinated, and managed for subject matter that is applicablecompanywide and decentrally controlled and coordinated forsubject matter that is specific to a plant or other facility. Cen-trally, all training is the responsibility of the Motorola Train-ing and Education Center, while decentrally, it is theresponsibility of the local training departments.

The Motorola Training and Education Center is an in-house employee training and education organization whose taskis to improve individual and organizational performance andproductivity on a worldwide corporate basis. Its operations in-clude a central staff and facility located near Motorola's head-quarters and five regional training centers, eat..h with a staff andfacility, located in Schaumburg, Illinois; Austin, Texas; Phoe-nix, Arizona; Geneva, Switzerland; and Kuala Lumpur, Mal-aipia . The centerpiece of the Motorola Training and Education

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Center is the Galvin Center for Continuing Education (locatedin Schaumburg, Illinois), which is a state-of-the-art trainingfacility with thirteen classrooms; a 180-seat auditorium; com-puter-aided design and manufacturing, robotics, and computerlaboratories; advanced audiovisual systems; and satellite hookupcapabilities. Small training facilities are located at several of theregional training centers and plants.

Created in 1980, the Motorola Training and EducationCenter has evolved into a multifaceted training service organiza-tion that supports the company by means of several activitiesand :ervices. The center's primary mission is to design, dc . Jop,deliver, and evaluate training courses that apply throughout thecompany and that address the company's strategic goals. Thecourses are presented either in regularly scheduled sessions atmost company training facilities or in special sessions at a timeand location convenient to the trainee group. As mandated byits mission, all training provided by the center must support thecompany's current strategic goals. Its current courses addressissues such as product quality, inventory reduction, and customerservice. Training provided by the center is performance basedand operates on a charge-back system. The center continuallyevaluates its courses, through feedback from the participants andtheir managers, and makes modifications as necessary.

The process of idt...ttifying the corporate strategic goals andthe associated training requirements is a continuous effort involv-ing high-level committee meetings. First, the Motorola Trainingand Education Center's advisory board, which is comprised ofthe company's senior executives (including Motorola's chair-man), meets twice a year to chart the corporate strategic plan,determine general training direction, and develop a generalbudget for each of five broad functional areas. Second, theMotorola Training and Education Center's functional advisorycouncils (five councils representing engineering, manufactur-ing and materials marketing, personnel, and sales) meet totranslate the executive advisory board's training guidance intospecific plans for each functional area. The advisory councilsmeet quarterly to identify and prioritize specific training re-

j_


quirements. Finally, the Motorola Training and EducationCenter's staff actually designs and develops courseware on thebasis of the councils' guidelines. All courses are synopsized in-dividually and within specific functional career pa'.'-s in a com-prehensive publication issued by the center.

A second missit.n of the center is to assist, upon request,the local training departments in designing, developing, deliver-ing, and evaluating the unique training courses required for theirspecific facilities. Staff training members located at the centeror regional training facilities can help identify training needs,develop a training curriculum, coordinate and implement theactual training course, and evaluate the course to measure train-ing quality and effectiveness. The center can also either pre-sent the course on-site or train and assist the local trainers.Moreover, the center staff is available to assist local trainingdepartments in preparing a training strategy that addresses thefuture goals of the specific plant.

The third mission of the center is to provide special ser-vices and programs. Its special services include computer-basedtraining in electronics concepts, terminology, and techniques;training for the company's suppliers in the areas of quality andjr in-time inventories; and satellite-delivered courses that pro-vide professional training to many of Motorola's engineers andtechnical workers. Its special programs include the Computer-Aided Design and Manufacturing Conference; the Manufac-turing Management Institute for Engineering, Manufacturing,and Operations Excellence; Foreign Study Tours; the Organiza-tional Performance System; and the Senior Executive Program.The center also participates in the National Technological Uni-versity-Satellite Delivery Program, which provides graduate-level courses for engineers needing state-of-the-art skills. Allcourses originate from major U.S. universities via satellitehookup and lead to degrees in the areas of computer engineer-ing, computer sciences, electrical engineering, engineeringmanagement, and manufacturing systems engineering.

In addition h, the Motorola Training and EducationCenter, there are local training departments that design, develop,


and deliver specialized courses for specific plants. Motorolabelieves that these local training operations, which are closelyassociated with the plants, are best suited to identifying and sup-porting each plant's training requirements. The Alotorola Train-ing and Education Center is available to provide expertise,additional resources, or consultation.

Overall, Motorola allocates approximately $44 million ayear to its training and education effort. This amount, whichrepresents 2.4 percent of its payroll, is Iry re than twice as muchas the average company allocates.

Staffing. Motorola employs more than 800 trainers andsupporting administrators at the Motorola Training and Educa-tion Center and in the local training departments. While a ma-jori y or the trainers at the center are professional trainers withsome subject matter experience, additional subject matter ex-perts represent each of Motorola's five functional areas. Thecenter also uses several hundred freelance writers and contractedinstructors to supplement its training development and deliverysegments. In addition, the center relies on area community col-leges, universities, and technical institutes for select training,both on- and off-site.

The local training departments employ more subject mat-ter experts for their operations because the training involvesspecific manufacturing and processing techniques and proce-dures. These local training staffs are supplemented by the Motor-ola Training and Education Center staff (upon request) and byoutside consultants. The center provides an extensive train-the-trainer program for new trainers and periodic refresher coursesfor existing trainers.

Target Groups. At Motorola, managers, engineers, tech-nical professionals, and craft workers receive technical train-ing. Managers and engineers receive the majority of theirtraining through the Motorola Training and Education Center'sspecial programs and seminars. Managers are primarily train-ed through classrcon seminars and special programs that ad-dress current issues affeLing the comp my's operations. The com-

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am! smImIMIMMEMI


pany's engineers, who receive more technically oriented train-ing, are trained through classroom instruction, satellite counies,and computer-based training programs. Technical professionalsand craft workers receive both general training, applicable com-panywide, and job-specific training, applicable to a particul; cplant. General training, which is technical, is presented to thesetarget groups by the center via classroom instruction, computer-based programs, and to a lesser extent, satellite-delivered courses.The job-specific training is usually presented by the local train-ing department at the individual plant and consists of classroomtraining, computer-based programs, and on-the-job training.

Training content is limited to subject matter that is jobrelated and/or that supports the corporate strategic goals. Train-ing provided by local facilities is exclusively job related and in-volves specific techniques, functions, procedures, and productlines. Training conducted by the center is general in nature andis more likely to support a corporate goal, such as zero defects/quality control, customer relations, and inventory control/mater-ial management. While the center's training courses can betechnical, they always assume a companywide perspective,regardless of the subject matter. (The Motorola Training andEducation Center believes that specific subject matter trainingis more appropriate for the local training functions.)

While the local training departments develop and pro-vide training for specific needs, the Motorola Training andEducation Center currently offers seventy-eight courses and 111films that encompass six major career development tracks. Arecent course catalog issuer; by the center lists the courses andfilms and provides training approaches and plans for each ofthe following tracks: creativity and benchmarking, engineering,inventory management, manufacturing operations, sales, andstatistical process control. In addition to these career tracks,the center also offers courses concerning the participative en-vironment.

Linkages. Because the Motorola Training and EducationCenter is responsible for a majority of the companywide train-ing, most of the training is interrelated. The center offers a

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variety of courses representing functional areas such as manage-ment development, sales, personnel management, interpersonalskills, organization development, negotiation, and foreign lang-uages. These lower-technology skills may be presented individ-ually or combined with higher-technology skills under amultidisciplinary curriculum. As an example, the manufactur-ing operations management development career path includescourses in effective meetings and interpersonal skills as well asin applied diagnostic tools, work-in-progress/cycle tune, andstatistical process control.

Training is also linked to Motorola's participativemanage-ment program. First, upon initial employment, each managerand employee receives orientation in participative managementand what to expect in a participative environment. Second, theprogram encourages all employees to continually update theirskills through the company's training programs in order to max-imize their contribution to their assigned work teams. In fact,training is frequently used as a tool for each team to increaseits productivity and efficiency and exceed its respective produc-tion and profitability objectives.

Technical training is also linked to the employee appraisalsystem through the company's Annual Performance and CareerPlan. With this plan, the employee and supervisor review theemployee's p-.:ceding year performance and determine whetherthe employee h.s met his or her carter development goals. Onthe basis of this review, the employee and supervisor jointlydetermine whether further training and education are necessary.


All training at Motorola directly supports the company'sstrategic goals. Through meetings of the Metoroli Training andEducation Center's executive advisory board ana functional ad-visory .:Linens, training is targeted to specific company issuesand corporate objectives. The center continually evaluates theeffectiveness of all training in terms of how it supports the com-pany's strategic goals and updates the courses as necessary.

Training supports Motorola's basic philosophy that itsemployees are a renewable resource that should be trained for


the mutual benefit of the company and the individual. Onlythrough its well-trained and highly skilled work force can Motor-ola continue its successful performance in the increasingly com-petitive electronics industry.

Northern Telecom

Northern Telecom Inc. is a wholly owned U.S. subsidiaryof Canadian -based Northern Telecom, Ltd., which is the world'sleading manufacturer of fully digital telecommunications systemsand major producer of office information management systems.Its products and related services are used by telephone companies,government and military agencies, and businesses and institu-tions throughout the Jrld. Northern Telecom operates fortymanufacturing plants, of which twenty-f ur are located in Can-ada, thirteen in the United States, two in Malaysia, and one inIreland. The company has research and development operationsin twenty-four of its forty manufacturing plants as well as in nineresearch facilities. Of these, three are located in Canada, fivein the United States, and one in the United Kingdom. NorthernTelecom employs a total of 48,778 people worldwide.

Northern Telecom manufactures a wide range of telecom-munications equipment within five major product areas. Thefirst area is central office switching systems, which are used bytelephone companies to interconnect their customers' lines. Sincethe mid-1970s when Northern Telecom introduced its fullydigital DMS central office switches, the company has remainedthe leading producer of the switches, with the largest worldwideinstalled base of fully digital switches. The second product areais voice and data transmission systems, which include fiber op-tical, microwave, and satellite communications equipment. Nor-thern Telecom is currently developing and testing a fiber opticaland switching network in a Florida community. The networkwill deliver integrated voice, data, and video services over oneline. The third area is data connectivity equipment and relatedsoftware, which enabie the transmission of data through com-plex communications systems with greater speed, quality, andreliability. The fourth area is private branch exchanges, whichare business communications systems located at customers' facil-


ities and control voice and data communications among tele-phone terminals. The company lea ds this product area with theMeridian SL-1 system, which is the most widely used, fullydigital system in the world. Northern Telecom's fifth productarea is telephone terminals, which include residential, business,and public telephone sets, hands-free units, automatic dialers,business workstations, and integrated voice/data terminals.

During 1987, Northern Telecom, Ltd., earned $328.8million in net income (an increase of 14.7 percent) on revenuesof $4.85 billion (an increase of 10.7 percent). This record-finan-cial performance is largely attributed to the continued successof existing products that incorporate state-of-the-art technologiesand excellent quality and reliability. The success also reflectsthe company's complete dedication to its customers by providingproducts with the greatest value and flexibility to meet theirneeds.

Northern Telecom'. success during 1987 can also be at-tributed to new product and technology advances and to con-tinued market expansion. During that year, Northern Telecomintroduced numerous types of equipment and applications thatadvanced the Integrated Services Digital Network. Promotedby the company, the network creates international technical stan-dards that permit the networking of voice, data, and imagesthrough international telecommunications systems. NorthernTelecom also introduced the '-ighly advanced DMS SuperNodedigital switch system, which provides twice the processing powerof previous DMS switches (this will increase to five times theprevious processing power by 1990), thereby enabling telephonecompanies to provide more sophisticated new services to theircu. tomets. The Meridian Customer Defined Networking Sys-tem, which provides greatly enhanced power, control, and flex-ibility over public and private telecommunications networks,was also introduced during 1987. This system enables large cor-porate, medical, and education customers to better control andmodify the telecommunications systems located on their prem-ises. Among a number of major sales oversew: during 1987, thecompany r,uccessfully marketed its Packet Switching NetworkSystem to the West German government for use in the new na-tional air traffic control communications network.

1.1 r.ri/Ci


Northern Telecom also concentrated on market expan-sion during 1987. The con any intensified its efforts in its pri-mary North American market by targeting key regions in whichderegulation and growth have created potential opportunity. Thecompany also pursued selective expansion within its newer mar-kets in Europe and the United Kingdom, Africa, the Near East,the Indian subcontinent, Japan, and the Pacific Rim. As a result,Northern Telecom penetrated new markets in Japan, West Ger-many, New Zealand, Australia, France, and the United King-dom. Future expansion may include joint ventures with leadingmanufacturers of a targeted region or, if appropriate, acquisition.

Northern Telecom's extensive research and developmentoperations have also contributed to its success by developingincreasingly more innovative communications systems andequipment with state-of-the-art technologies that meet customers'needs. During 1987, Northern Telecom increased its researchspending by 12 percent to $588 million. Over the next five yearsthe company will double the $2.1 billion that was allocated forresearch and development between 1982 and 1987. The com-pany recognizes that only through extensive research can it re-main a leader in the highly competitive and rapidly growingtelecommunications industry.

Northern Telecom projects that future growth of the tele-communications industry will explosive and unmatched byany other industry, reaching $300 billion in revenues from thecurrent $75 billion by the year 2000. The trend toward globaleconomics and the development of new technologies and newgenerations of information management equipment are expectedto increase the need for more sophisticated and efficient telecom-munications networks and systems with greater capacity. Ad-ditionally, Northern Telecom believes that a sophisticated globaltelecommunications system is the most effective means of increas-ing productivity and international competitiveness because ofits ability to network a wide range of voice, data, and video com-munications systems. As a result, the company believes that mostdeveloping and developed governments will be expanding, mod-ernizing, or replacing their present telecommunications systems.

Northern Telecom intends to capitalize on that growthand remain a leader by focusing on the five major product areas

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that it envisions as central to the telecommunication industry'sfuture growth. Within the central office switching product area,total annual revenue in just tht North American market is ex-pected to increase from the current $6 billion to more than $12billion by the year 2000. This growth will result from new de-mands by business customers for services that arc now availablethrough new high-technology switches such as the DMS Super-Node. To maximize its growth potential in switch products, Nor-thern Telecom will continue designing its products to permitupgrading as new technologies evolve. The transmission equip-ment product area is expected to grow from $4 billion in an-nual revenue to $20 billion by the year 2000. Demand bybusiness users and telephone companies for the greater capaci-ty and flexibility afforded by optical fiber and microwavetransmission equipment will lead the growth. The data connec-tivity product area will be the fastest-growing area in the NorthAmerican market, with an anticipated growth in annual revenuefrom the current $3 billion to more than $20 billion by theyear2000. Northern Telecom intends to lead the growth with state-of-the-art products such as the LANSTAR data system, which,provides an interface among equipment from different manufac-turers. The private business exchange product area is expectedto increase in just North America from $4 billion in annualrevenue to $15 billion by the year 2000. Demands for newenhanced services, such as voice and text messaging and callaccounting, and deregulation of several key markets will pro-vide the growth opportunity within this product area. Finally,the terminal p Jduet area is projected to grow from $4 billionin annual revenue to more than $15 billion by the year 2000.Demand for more sophisticated telephone terminals, such as in-telligent pay phones and telephones with touch sensitive displays,will stimulate the growth.

Strategic Goals

Northern Telecom is pursuing the immediate strategicgoal of strengthening its role as the leading manufacturer of fullydigital telecommunications equipment. At the same time, the

L 4)


company is positioning itself for the long-term goal of becom-ing the iorldwide leading producer of telecommunicationsequipment within a vastly expanded and highly competitive in-dustry. To help the company concentrate its efforts on specificindustry growth areas anticipated for the year 2000, NorthernTelecom has established its "Vision 2000" plan. As currentlyreflected in the plan, 'he company believes that its five majorproduct areas will have the greatest growth potential in thetelecommunications industry.

To capitalize on that potential, Northern Telecom intendsto continue designing and developing telecommunications pro-ducts within the five highest potential growth areas that incor-porate the latest innovations and technologies together with thehighest degree of product quality and reliability. To supportnew product development and remain in the forefront of tech-nical innovation, the company plans to continue its extensiveresearch and development efforts. In fact, Northern Telecomis striving for technological advances that could establish industrystandards for both products and performance. The company alsointends to continue its aggressive expansion into new NorthAmerican market segments as well as into new markets overseas.To support this expansion, the company will continue to posi-tion ;tself as a multinational producer and marketer of telecom-munications equipment. The company will also continue itscommitment to customer service by providing products withmaximized value and flexibility to satisfy its customers' needs.

Northern Telecom will also continue to streamline itsmanufacturing operations to improve productivity and decreaseoperating costs through investments in new equipment andtechnologies. Additionally, the company will continue to en-courage employee participation through the establishment ofteams within select product development and manufacturingoperations.

Training Structure

Organization. With the exception of management and pro-fessional development and sales and marketing training, which

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are normally designed, developed, and delivered centrally byNorthern Telecom Inc.'s headquarters training operation, train-ing, including technical training, is decentralized to division andplant levels. The central training operation, however, is respon-sible for designing and developing generic orientation and coretechnical training courseware for delivery by the p:oduct divi-sions to their technical and skilled workers. Decent alized train-ing is considered the most effective system because many of thecompany's plants have unique and complex products dila'manu-facturing operations. Northern Telecom therefore believes thatits plants are best equipped with the operational expertiseneces-sary to identify their own training requiremer...s. The companyalso believes that by decentralizing training, the plants can re-spond more quickly with new and specific training programsto support the continual advancement of products and manufac-turing technologies.

Being decentralized, technical training is conducted bytraining operations that join part of the two major opetatingdivisions, Integrated Network Systems and Meridian DigitalServices, and also by the individual plants when specialized ormanufacturing procedures are involved. There is no formalorganizational relationship and only minimal informal interfaceamong the training operations because of their unique trainingrequirements.

Because of the company's decentralized training structure,the rest of this case study is limited to a review of the technicaltraining operations of the Integrated Network Systems Groupand of the specialized semiconductor plant in Rancho Bernardo,California. The Integrated Network Systems Division is con-sidered representative of divisional training operations, whilethe semiconductor plant provides an example of technical train-ing's major role in supporting the plant's recent restructuringinto work teams.

Within the Integrated Network Systems Group, withproduces telecommunications switching and related equipment,technical training is generally designed and developed centrallyat the group level and presented decentrally at the plant level.Training is basically organized under four activities. technical,


which trains circuit- and system - level technicians and engineers;operations, which trains just-in-time inventory control and pro-duction; manufacturing, which trains product assemblers; andsales and marketing, which provides sales training to supportspecific switching products. The four training activities have noformal organizational linkages.

The Integrated Network Systems Group central trainingstaff is responsible for designing and developing the trainingcoursew4.:- Because training is ultimately the responsibility andprerogative cf division and plant operations managers, centraltraining staff members serve as training consultants and facili-tators in developing training programs that address specific oper-ating problems or that support newly installed equipment. Thecentral training staff works closely with both operations subjectmatter experts and operations staff trainers during the needsanalysis and design and development phases to obtain the neces-sary technical expertise. The central training staff also providestrain-the-trainer instruction and certification to the operationsstaff, which will actually conduct the training programs. The cen-tral training staff further assists operations staff trainers and man-agers in evaluating the effectiveness of trainingprograms. Finally,the central staff may provide, upon request, assistance to the oper-ations staff trainers during the actual training presentation.

Delivery of technical training within the division is theresponsibility of operations personnel with subject matter ex-pertise who have received instructor training and certification.Depending on the product or equipment, technical training isconducted either at the plants or at the division's central train-ing facility in Raleigh, North Carolina, which offers equipmentsimulators as well as classrooms. Operations staff trainers areassigned to the central facility and the individual plants andreport to operations management within those activities. Gener-ally, manufacturing and operations training is accomplished atthe specific plants, while circuit- and system-level training is ac-complished un the equipment simulators at the central trainingfacility.

Northern Telecom's semiconductor plant in Rancho Ber-nardo, California, manufactures application-specific integrated

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circuit components for use in Northern Telecom products. Theplant has the primary advantage of being a secure and fullydedicated supplier that is being completely oriented toward Nor-thern Telecom's products and manufacturing procedures andtechnologies. The plant is unique in that it does not report toany of Northern Telecom's major product divisions.

Following a 1984 audit that identified weaknesses inpro-ductivity and product quality, the plant's directors and topmanagement accomplished a major restructuring designed tohelp achieve excellence and restore competitiveness. Prior tothe restructuring, the plant's top managers established the ob-jectives of making the plant the premier producer of semicon-ductors that can exploit all technological advances of theindustry. The managers decided that to achieve that objective,the plant had to have an outward orientation to best capitalizeon opportunities in the industry, a work force with advancedskills and knowledge, and improved communications and in-terface among plant functions.

As a result of the top-level planning, the Rancho Bernardoplant has been restructured to encourage employee participa-tion, responsibility, and open communication. To support thisnew structure, several layers of management have been removedand plant functions such as manufacturing, finance, humanresources, and technical training have been integrated intobusiness "councils." One business council has been created foreach of the plant's main activities, or "business units" (fabrica-tion, testing, and assembly), to provide direction and sugges-tions and to allocate resources. Beneath each of the three businesscouncils are three to twelve independent work teams, each ofwhich is comprised of engineers, equipment technicians, ten totwelve operators, and a team manager. Each team has the au-thority to mobilize the resources necessary to accomplish anytask, goal, or objective.

Technical training has been restructured to better sup-port the plant's new work team organization. From the begin-ning, top managers have considered technical training absolutelycritical to the success of the work teams. All work team of -atorsand technicians have to be familiar with a variety of equipmentand procedures to provide the versatility to operate, trouble-

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shoot, and maintain each piece of equipment in a team's worksta-tion. In addition, each work team member has to keep pace withthe rapidly changing product and manufacturing technologiesthat continue to advance the semiconductor industry. To sup-port these objectives, technical training has been included asone of the functional responsibilities of the work teams. The workteams are responsible for identifying and analyzing their train-ing requirements, structuring a training program, and actuallyconducting the training.

A technical training group has been established withineach of three business units. The technical training departmentswithin the business units serve as a consultant to the work teamswithin each business unit. Each department's primary role isto instruct each team in how to develop and conduct trainingprograms, to provide training materials as required, and toevaluate the effectiveness of the work team's technical training.The technical training department also functions as a researchunit for new training technologies and thus keeps abreast of thelatest training methods and how other companies within the in-dustry conduct their training.

A training and education function, as part of the HumanResources Department provides courses in both technical andnontechnical subjects of interest to employees throughout thedivision. The division's library is a part of this training andeducation group and provides divisionwide course scheduling,registration, and coordination. In addition, learning packageson both technical and nontechnical subjects are available in audioand video programs, interactive video, self-paced printed mater-ials, and other forms.

Staffing. Of Northern Telecom's 900 technical trainers,approximately 400 are involve-1 in Integrated Network SystemsGroup's technical, operations, manufacturing, and sales andmarketing training activities. Major programs are also availableto provide product operations and maintenance training to thedivision's customers.

In each of the division's four training activities, a centraltraining staff accomplishes the needs analysis, designs anddevelops the training courseware, and conducts instructor train-


ing for the training providers. The staff is comprised of humanresource specialists who have backgrounds in adult educationand instructional systems and subject matter experts who havehad some exposure to adult education. Interestingly, once thesubject matter experts transfer from operations to training, theylose their expert status and must rely on operations personnelfor course data. This is intended to align training more closelywith plant operating activities. The major co-sideration in select-ing trainers is that candidates not be "dead ended" in the train-ing function because training is considered a step in the careertrack rather than a career in itself. Each trainer must be capableof moving to other positions within the division or the co..-poration.

Generally, the central training staff approaches all train-ing design and development operations as a team. A subjectmatter expert, who is the training "prime designate," is respon-sible for overall course content and as a result works closely withthe operations personnel who have requested the training. Ahuman resource specialist with an adult education backgroundis responsible for organizing the content in the most effectivemanner for maximizing adult learning. Finally, a media special-ist assists in developing the accompanying training material.

Training delivery is generally decentralized and the re-sponsibility of operations staff members who have received in-structor training. The operations training staff conducts trainingat the division's central training facilities and at the individualplants. The division's central training facilities are generally usedto provide equipment simulation training to circuit- and system-level technical employees and equipment familiarization train-ing to sales and marketing personnel. Manufacturing and opera-tions training is accomplished at he plants to maximize actualhands-on instruction. The opera .ions staff members also workwith the operations personnel and the central training staffto help evaluate training effectiveness and to solve trainingproblems.

Integrated Network Systems Group's customer servicetraining is conducted separately from the other four trainingactivities. The training is oriented more toward product opera-tions and maintenance and is conducted by Customer Service


Department training staff members who are closely associatedwith the division. Customer service training is conducted in twomajor training centers at Research Triangle Park, North Car-olina, and Sacramento, California.

The division uses contract providers for some technicaltraining, primarily in the area of advanced technical trainingfor engineers. Select community colleges and area universitiesare also used for technician and engineer career development.Moreover, original equipment manufacturers conduct someoperations and maintenance training for skilled workers andtechnicians when new manufacturing equipment is installed.

Technical training at the Rancho Bernardo plant is pri-marily conducted by a training staff assigned to the technicaltraining department within each of the three manufacturingbusiness units and designated technical trainers within each workteam. The technical training departments are comprised ofspecialists who have backgrounds in a variety of fields (mostlyin integrated circuit manufacturing) and extensive training andeducation in instructional systems design and training methods.Their responsibilities include training each work team to becomea self-training resource, assisting the teams in solving problems,providing the training materials necessary for the teams to con-duct self-training, and evaluating the effectiveness of work teamtraining. In addition, the training and education function withinthe Human Resources Department offers internal seminars, con-ducted by both internal 2-.nd external trainers to acquaint engi-neers, technicians, and operators with new developing technol-ogies and methods.

Under the new plant structure, each work team is respon-sible for identifying its technical training requirements, struc-turing a training program, and conducting the training. Depend-ing upon the work team, responsibilities for technical trainingwithin the team may be assumed by the entire team, assignedto the team member best qualified in a specific area, or rotatedamong the members. In situations involving complex proceduresor theories, the team engineer or technician may conduct thetraining; equipment operations and maintenance training isusually conducted by a team equipment operator. Generally,

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however, the team works as a unit to address operating prob-lems and to develop potential training solutions.

Technical training at the plant is also provided by out-side services through the plantwide training and education func-tion. Through a satellite system offered.by a local university,engineering and advanced engineering courses are provided tothe plant's technicians and engineers. Techni' al schools and com-munity colleges also offer courses to enhance . kills and theoreticalunderstanding for equipment operators and technicians. Finally,equipment manufacturers usually provide maintenance train-ing for technicians in conjunction with the installation of newequipment Training is sometimes also provided to operatorsof the newly installed equipment.

Target C`roups. Technical training within the IntegratedNetwork Systems Group varies widely since it is the sole respon-sibility and prerogative of the division and individual plantmanagers. Most managers see training as critical to their opera-tions, and all new supervisors receive a training orientation thatstresses the need for training. Most importaiitly, NorthernTelecom has expressed its commitment to training as a majorfactor in its expansion efforts. Generally, all plants conduct sometraining, typically an orientation for new hires, remedial train-ing to address specific deficiencies, update training to maintainmanufacturing efficiency and productivity, and new equipmenttraining. Training content covers manufacturing equipmentoperations and maintenance, circuit- and system-level testing,product assembly, and theory (for senior personnel). Overall,skilled workers and technicians receive the most training, whichconsists of training in equipment operations and maintenanceand product testing. Engineers receive less training, which con-sists primarily of advanced engineering and theory training. Fre-quency of training also depends on the operations managers,who are responsible for developing their own employees. Mostmanagers use a career development track to identify suggestedcomics to be taken by each employee at career milestones. Anindividual development plan is designed for each employee inorder to identif, strengths and weaknesses, recommend a cart,:

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path, and develop a supporting training program. Annual eval-uations are used to monitor the employee's progress and indicatewhether additional training is required.

Depending on the target group and subject matter, tech-nical training is conducted at the individual plants, at the divi-sion's ceural training facility, or at a noncompany off-site facility.The training media include classroom instruction, equipmentsimulation, computer-based training, satellite-transmitted course-ware, self-paced training manuals, self-paced interactive video,and on-the-job training. All training courseware is continuallyevaluated by means of posttraining interviews and questionnairesto ensure maximum effectiveness.

The primary focus of technical training at the RanchoBernardo plant is the work teams and their members the en-gineer, the equipment technician, and the operators. Traininginvolves subject matter relating to the three major activities ofthe plant: fabrication, testing, and assembly. Typically, operatortraining is conducted by the designated work team trainer eitheron-site at the workstation or in plant classrooms. Engineer andteclmich.n training is more likely to be conducted in the plantclassroom by outside trainers and educators or by members ofthe technical training department.

To capitalize fully on the work team structure, each teammember must have a breadth and depth of skills and knowledgeto perform a multitude of tasks at more than one workstation.To help promote and monitor each member's development, theplant is in the process of establishing a knowledge and skill pro-gression system. The system will provide four levels of certifica-tionbased on knowledge and exper:ence for each of the workteam's workstations. Each member will be encouraged by theteam to achieve top certification in all of its workstations. Theplant's various technical training activities will play a major rolein helping each member attain certification.

Linkages. Because the responsibility for technical train-ing at both Integrated Network Systems and the semiconduc-tor plant at Rancho Bernardo has been placed at the operationswork level, there are no direct linkages with other training.

190


However, because of the complex nature of the division's switchproducts and the close proximity of the two training facilities,there is an indirect link between technical training and customerservice training. Furthermore, because the company's manage-ment development and orientation training includes instructionin the use of technical training to achieve the corporate goals,there is an indirect link between management and technicaltraining.

The closest link between the human resource function andtechnical training occurs within the Rancho Bernardo semicon-ductor plant. With its new structure, representatives from thetechnical training, human resource, manufacturing, production,and finance functions serve together to provide integrated direc-tion, guidance, and resources to the work teams. Moreover, thedivisionwide training and education function is a componentwithin the Human Resources Department. The training andeducation function provides technical training courses of interestto employees throughout the division. This function also pro-vides in-house training and education on instructional designand training skills to members of the technical training depart-ments and to team trainers.

At the Integrated Network Systems Division, there is anindirect link between the human resource function and technicaltraining because the division's central technical training staffreports through the human resource function.


Technical training directly supports Northern Telecom'scorporate strategy of becoming the world's leading producer oftelecommunications equipment by the year 2000. Training willprovide the advanced skills and knowledge necessary to excelin an industry that will be highly technical and fiercely com-petitive. It will provide the company's work force with the know-ledge, skills, and understanding necessary to anticipate andcorrect potential produc:ion problems quickly and to recommendproduction and product improvements. It s ill also provide ti.v.depth and breadth of skills necessary for employees to become

199


versatile members of work teams. Only through a completelyinvolved and highly skilled work force can Northern Telecomproduce highly advanced and reliable products that providequality and value to the customer.

Northern Telecom's top managers recognize the absolutenecessity of technical training in achieving the Vision 2000strategic goal. Their commitment to training permeates all divi-sions of the company through all of the company's managers.

) 0 0

Appendix

Following is a listing of representative groups of occupationsamong technical professionals, technicians/technologists, andskilled trade workers.

I. Technical ProfessionalsA. Engineers, Architects, Surveyors

1. EngineersAeronautical and Astronomical EngineersCeramic EngineersChemical EngineersCivil EngineersElectrical EngineersIndustrial EngineersMaterial EngineersMechanical EngineersMine Safety EngineersMining EngineersMetallurgical EngineersNuclear EngineersPetroleum Engineers

2. Architects (excluding landscape and marine)3. Surveyors

B. Natural, Computer, and Mathematical Science1. Computer and Mathematical Occupations

ActuariesComputer Systems AnalystsMathematicians

183

201

184 Appendix

Operations and Systems ResearchersStatisticians

2. Life ScientistsAgricultural ScientistsBiological ScientistsForesters/Conservation Scientists

3. Physical ScientistsAstronomersChemistsGeologistsGeophysicistsMeteorologistsOceanographersPhysicists

C. Health Diagnosing and Treating OccupationsAudiologistsChiropractorsDentistsDieticians and NutritionistsOccupational TherapistsOptometristsPharmacistsPhysical TherapistsPhysicians and SurgeonsRecreational TherapistsRegistered NursesRespiratory TherapistsSpeech PathologistsVeterinarians and Veterinary Inspectors

D. Transportation OccupationsAircraft PilotsFlight EngineersShip Captains

II. Technicians/TechnologistsA. Health Tec icians and Technologists

Clinical Lab Technicians and TechnologistsDental HygienistsDietetic Technicians

Appendix 185

Electrocardiographic TechniciansElectroencephalograph TechniciansEmergency Medical TechniciansLicensed Practical NursesMedical and Clinical Lab Technicians/TechnologistsMedical Records TechniciansOpticians, Dispensing and MeasuringPhysician AssistantsRadiclogical Technicians and TechnologistsSurgical Technicians

B. Engineering and Science Technicians and Tech-nologists

Civil Engineering TechniciansDraftersElectrical and 7.1ectronic Technicians/TechnologistsEngineering TechniciansIndustrial Engineering TechniciansMechanical Engineering TechniciansPhysical and Life Science and Math Technicians

C. Other Technologists and TechniciansAir Traffic ControllersBroadcast TechniciansComputer ProgrammersPhotographers

D. Mechanics, Installers, and RepairersAircraft Mechanics and Engine SpecialistsAutomotive Body and Related RepairersAutomotive and Motorcycle MechanicsBicycle RepairersBus and Truck MechanicsCoin and Vending Machine Servicers and RepairersCommunications Equipment MechanicsData-Processing Equipment RepairersDiesel Engine MechanicsElectrical InstallersElectrical and Electronic Equipment MechanicsElectronics Home Entertainment Equipment Re-pairers

C 0Ivo

a.

186 Appendix

Electronic Meter r epairers and InstallersElectronical Medical/Biomedical Equipment Re-pairersElectronics Commercial Equipment RepairersFarm Equipment MechanicsHeating, Air-Conditioning, and RefrigerationMechanicsHome Appliance and Power Tool RepairersIndustrial Machinery MechanicsMaintenance RepairersMarine Machinery Maintenance MechanicsMillwrightsMine Machinery MechanicsMobile Heavy Equipment MechanicsMobile Home RepairersMusical Instrument Repairers and TunersOffice Machine and Cash Register ServicersPrecision Instrument RepairersRadio MechanicsRail Car RepairersSmall Engine MechanicsTelephone and Cable TV Installers and RepairersTelephone Station Installers and RepairersTextile Machine Maintenance MechanicsWater and Power Plant Machinery and Mechanics

III. Skilled Trade (Blue-Collar) WorkersA. Construction Workers

BlastersCarpentersElectriciansPipefittersPlumbersShipfittersSteamfitters

B. Precision Metal WorkersBoilermakersJewelers and SilversmithsMachinists

:(. 0 ,..;

I

Appendix 187

Precision GradersPrecision InspectorsPrecision TestersSheet Metal WorkersTool and Die MakersWatchmakers

C. Plant and System OperatorsChemical Plant and System OperatorsPetroleum Refinery and Control Plant OperatorsStationary EngineersWater and Liquid Waste Treatment Plant Operators

205

11=111311111111111111111111111111

References and Suggested Readings

Abram, R., Ashley, W., Faddis, C., and Wiant, A. Preparingfor High Technology: Programs That Work. Columbus: NationalCenter for Research in Vocational Education, Ohio StateUniversity, 1982.

American Federation of Labor-Congress of Industrial Organiza-tions. Policy Paper for 1981. Washington, D.C.: AmericanFederation of LaborCongress of Industrial Organizations,1988.

American Society for Training and Development. Models of Ex-cellence. Alexandria, Va.: American Society for Training andDevelopment, 1983.

Butler, R. "The Training of Skilled Trade Workers." Unpub-lished paper prepared for the American Society for Trainingand Development, Alexandria, Va., 1988.

Byrne, J. A. "The Rebel Shaking Up Exxon." Business Week,July 18, 1988, pp. 104-111.

Carey, M. L. How Workers Get Their Training. Bureau of LaborStatistics, Bulletin 2226. Washington, D.C.: U.S. Govern-ment Printing Office, March 1985.

Carnevale, A. P. Human Capital: A High-Yield Corporate Invest-ment. Alexandria, Va.: American Society for Training andDevelopment, 1983.

Carnevale, A. P. Jobs For the Nation: Challenges for a Society Basedon Work. Alexandria, Va.: American Society for Training andDevelopment, 1985.

Carnevale, A. P., and Gainer, L. J. The Learning Enterprise.Washington, D.C.: U.S. Government Printing Office, 1989.

189

2 0 6

190 References and Suggested Readings

Carnevale, A. P., Gainer, L. J., and Meltzer, A. S. WorkplaceBasics: The Skills Employers Want. Washington, D.C.: U.S.Government Printing Office, 1988.

Center for Educational Statistics. Digest of Education Statistics 1987.(T. Snyder, compiler.) Washington, D.C.: U.S. GovernmentPrinting Office, May 1987.

Choate, P. "Employability." In Adult Learners and National Prior-ities: Emerging State and Federal Policies. Proceedings of the Na-tional Invitational Conference on State and Federal PolicyAffecting Adult Learners, Nov. 1985. Columbia, Md.: Com-mission on Higher Education and the Adult Learner, 1985.

Choulochas, J., and McKenney, K. "The Beat Goes On: Part-nership Building." Community, Technical, andJunior CollegeJour-nal, 1986, 56 (5), 62 -64.

Cohen, S. L., L'Allier, J. J., and Stewart, D. "Interactive Video-discThen, Now, and Minutes from Now." Training & Devel-opment Journal, Oct. 1987, pp. 31-36.

Glover, R. W. Apprenticeship in the United States: Implications forVocational Education Research and Development. Occasional PaperNo. 66. Columbus: National Center of Research in Voca-tional Education, Ohio State University, 1986.

Goldstein, H. 'Technical Workers in the United States." Unpub-lished paper developed for the American Society for Trainingand Development, Alexandria, Va., 1988.

Harwood, R. K. Directions: A Guide to Career Planning. Boston,Mass.: Houghton Mifflin, 1978.

Hull, D. M. "Preparing Technicians for Tomorrow's Jobs." InD. M. Hull (ed.), Technician Education Directory. (12th ed.) AnnArbor, Mich.: Prakken, 1986.

Kimmerling, G. F. "The Youth Market: A Valuable Resource."Training & Development Journal, 1986, 40 (7), 59.

Lillard, L. A., and Tan, H. W. Private Sector Training: Who GetsIt and What Are Its Ejects? Report to the U.S. Department ofLabor. Santa Monica, Calif.: Rand Corporation, 1986.

McDaniels, C. "Three of Many Possible Future OccupationalScenarios for the 1990s."Journal of Cooperative Mutation, 1986,22 (2), 6.

r. . ,.,A,U

References and Suggested Readings 191

National Academy of Engineering, Engineering Education andPractice in the United States. Continuing Education of Engineers.Washington, D.C.: National Academy Press, 1985.

National Research Council. The Competitive Status of the UnitedStates Auto Industry. Washington, D.C.: National Academyi .-zss, 1982.

Smith, E. E., "Interactive Video: An Examination of Use andEffectiveness." Journal of Instructional Development, 1987. 10(2), 2-10.

Stephan, E., Mills, G. E., Pace, R. W., and Ralphs, L. "HRDin the Fortune 500A Survey." Training Cc? DevelopmentJournal,Jan. 1988, pp. 26-32.

"Training Magazine's Industry Report 1987." Training, Oct. 1987,pp. 33-72.

U.S. Department of Defense. Mir 9, Manpower Training ReportFY 1989. Washington, D.C.: 1.) Department of Defense,1988.

U.S. Department of Labor, Bureau of Labor Statistics. Occupa-tional Outlook Handbook. Washington, D.C.: U.S. GovernmentPrinting Office, 1987.

U.S. Department of Labor, Bureau of Labor Statistics. Occupa-tional Projections and Training Data. Washington, D.C.: U.S.Government Printing Office, 1986.

Warmbrod, C. P., Persavich, J.J., and L'Angelle, D. SharingResources: Postsecondary Education and Industry Cooperation. Co-lumbus: National Center for Research in Vocational EduLa-tion, Ohio State University, 1981.

West, E. "The Employer Map: The Organization of TechnicalTraining." Unpublished paper developed for the AmericanSociety for Training and Development, Alexandria, Va.,1988.

William T. Grant Foundation Commission on Work, Family,and Citizenship. The Forgotten Half: Noncollege Youth In America.Washington, D.C.: The William T. G7 ant Foundation, 1988.

Work in America Institute. "Cost-Effective Design and Deliveryof Training Programs." In Training for New Technologies. Scars-dale, N.Y.: Work in America Institute, 1987.

208

Index

A

Abram, R., 61, 62Advisory committees, 58-59Alabama Technical College, 72Alcoa, case study, 101-112American Federation of Labor-Con-

gress of Industrial Organizations(AFL-CIO), 49

American Society for Training andDevelopment, 35, 96

American Telephone and Telegraph(AT&T), 69

Apprenticeship, 18-19, 49, 71-72Armed forces. See Military trainingAshley, W., 61, 62Association of Media-Based Continuing

Engineering Education (AMCEE),74

B

Butler, R., 2, 51

C

CAD/CAM and Engineering Tech-nology Program (Cuyahoga Com-munity College), 59

Carey, M. L., 45Carrier Corporation, 33-34, 37-38;

case study, 77-81Certification, 19Cincinnati Milicron, 61-62Cohen, S. L., 76

Colleges and universities, four-year, 37,51-52, 69. See also Educational in-stitutions

Comcast Cablevision, 70Community and junior colleges, 52,

67-69. See also Educational insti-tutions

Community-based organizations(CB0s), 55, 69-70. See also Educa-tional institutions

Connections, 56-57; advisory commit-tees, 58-59; continuing education,62-65; cooperative work experi-ences, 59-61; exchange of person-nel, 61-62; networking, 65; sharingcurriculum, 62

Consultants. See VendorsContinuing education, 62-65; CEUs,

19, 62Cooper Industries. See Crouse-Hinds/

Cooper IndustriesCooperative work experiences, 59-61Cross-training, 19Crouse-Hinds/Cooper Industries, 68-

69; case study, 82-89Cumberland County College, 72Curriculum. Hull's, 12-13, sharing, 62Customized training: programs, 66;

providers, 67-72

D

Data - processing technical personnel,14-18

193

209

194 Index

Digital Equipment Corporation (DEC),60, 62

Dupont, 74Durham Technical Institute, 61

E

Economic development programs, state,70-71

Educational institutions: communityand junior colleges, 52, 67-69; com-munity-based organizations, 55,59-70; four-year colleges and uni-versities, 37, 51-52, 69; militarytraining, 53-54; technical institutes,52; vendors, 54-55, 69; vocational,trade, and business schools, 52-53,67-69

Exchange, of personnel, 61-62

F

Faddis, C., 61, 62Federal Express Corporation, 28, 76;

case study, 112-121FMC Corporation, case study, 135-142Ford Motor Company, 38; case study,

121-134Frito-Lay, Inc., 30-31, 41; case study,

142-149

G

General Electric, 60Glover, R. W., 49

H

Harwood, R. K., 14Hazard communication, 10,Holophane Company, 67Honeyweti, 60Hull, D. M., 12

I

Integrated manufacturing, 10International Business Machines (IBM),

60

JJunior colleges. See Community and

Junior Colleges

K

Kepner Trego selection package, 35, 96Kimmerling, G. F., 17

L

L'Allier, J. J., 76L'Angelle, D., 71, 72Licensing, 19Linkages, 57; Alcoa, 111; Carrier Cor-

poration, 81; Crouse-Hinds/CooperIndustries, 88-89; customized train-ing programs, 66-72; with otheremployers, 73; Federal Express Cor-poration, 120-121; FMC Corpora-tion, 141; Ford Motor Company,133; Frito-Lay, Inc., 148-149; MerckPharmaceutical Manufacturing,157; Motorola, 165-166; NiagaraMohawk, 98-99; Northern TelecomInc., 179-180; OEMs, 9, 20, 37-38,72-73

M

Merck Pharmaceutical Manufacturing,case study, 149-158

Military training, 53-54. See also Educa-tional institutions

14 Monsanto Corporation, 68Motorola, 41-42; case study, 158-167

Industrial Services Division (ISD; NorthCarolina), 71

Information: center, 17, exchange, 56

210

N

National Academy of Engineering, 63,74

National Aeronautics and Space Ad-ministration (NASA), 64-65

National Apprenticeship Act, 49

Index 195

National Technological University(NTU), 74

Networking, 65Niagara Mohawk, 27, 35-36; case

study, 89-100Noah Carolina, Industrial Services

Division (ISD) of, 71Northeastern University, 60-61Northern Telecom Inc., 36-37, 40-41;

case study, 167-181

0

Onondaga Community College, 68-'69

Opportunities Indu,tri..!:-Ation Center(OIC), 70

Organization, of teaining, 32-34; Al-coa, 104-106; Carrier Corporation,79-80; Crouse-Hinds/CGope. Indus-tries, 86; Federal Express Corpora-tion, 114-116; FMC Corporation,138-140; Ford Motor Company,126-127; Frito-Lay, Inc., 145-146;Merck Pharmaceutical Manufactur-ing, 153-154; Motorola, 161-164;Niagara Mohawk, 92-95; NorthernTelecom Inc., 171-175

Original equipment manufacturersPEW, 9, 20, 37-38, 72-73

P

PepsiCo. See Frito-Lay, Inc.Persavich, J. J., 71, 72Piedmont Technical College, 61, 68Polaroid, 31Preparation training. See Qualifying

trainingProfessional societies, 37, 54. See also

Educational institutionsProviders, training: employer, 9-10,

34-37; external, 9, 12, 37-38

Q

Qualifying training, 3, 46, 51, 52, 53,54

2 1 i

R

Remediation, 19-20

S

Sabbaticals, 6/Safety training, 10, 14Satellite networks, 73-75Siemens USA, 29Skilled trade (blue-collar) workers, 3,

5, 18-21, 47-48Smith, E. E., 75, 76Staffing, technical training: Alcoa,

106-108; Carrier Corporation, 80;Crouse-Hinds/Cooper Industries,86-87; externally, 37-38, 50-51;Federal Express Corporation, 116-117; FMC Corporation, 140; FordMotor Company, 128-131; Frito-Lay, Inc., 146-147; internally, 34-37, 50; Merck Pharmaceutical Man-ufacturing, 154-155; Motorola,164; Niagara Mohawk, 95-97;Northern Telecom Inc., 175-178

Stewart, D., 76Strategic goals, 38-42; Alcoa, 103-104;

111-112; Carrier Corporation, 78-79, 81; Crouse-Hinds/Cooper In-dustries, 84-86, 89; Federal ExpressCorporation, 114, 121; FMC Cor-poration, 137-138, 141-142; FordMotor Company, 124-126, 133-134; Frito-Lay, Inc., 144-143, 149;Merck Pharmaceutical Manufactur-ing, 152-153, 1L7-158; Motorola,160-161, 166-167; Niagara Mo-hawk, 92, 99-100; Northern Tele-com Inc., 170-171, 180-181

T

Technical institutes, 52.See also Educa-tional institutions

Technical professionals, 3, 6-11, 46-47Technical work force, 1-2; Alcoa, 108-

111; background, 3-6; Carrier Cor-poration, 80-81; Crouse-Hinds/Cooper Industries, 87-88; Federal

196

Express Corporation, 117-120;FMC Corporation, 140-141; FordMotor Company, 131-133; Frito-Lay, Inc., 147-148; growth, 22; in-vestment in training, 9, 12, 22-23;Merck Pharmaceutical Manufactur-ing, 155-156; Motorola, 164 -165;Niagara Mohawk, 97-98; NorthernTelecom Inc., 178-179

Technicians, 3-5, 11-14, 47Technological changes, 17, 46Texas Instruments (TI), 74Training: and corporate strategy, 38-

42, 81, 89, 99-100, 111-112, 121,133-134, 141-142, 149, 157-158,166-167, 180-181; customized, pro-grams, 66-72; data-processing tech-nical personnel, 14-18; delivery of,73-76; employer-provided, 9-10,34-37, 49-50; external, providers,9, 12, 37-38, 50-51; organizationof, 32-34; providers, 9, 34-38, 48-49; qualifying, 46, 51, 52, 53, 54;skilled trade workers, 3, 5, 18-21,47-48; technical professionals, 3,6-11, 46-47; technical, 2, 45-46;technicians, 3-5, 11-14, 47; up-grade, 46-47, 51-52, 53

Training structure: Alcoa, 104-111;background, 24-25; Carrier Cor-poration, 79-81; centralized, 26-27;combination, 30-31; Crouse-Hinds/Cooper Industries, 86-89; decen-tralized, 27-30; Federal ExpressCorporation, 114-121; FMC Cor-poration, 138-141; Ford MotorCompany, 126-133; Frito-Lay,Inc., 145-149; Merck Pharmaceu-

21 2

Index

tical Manufacturing, 153-157; Mo-torola, 161-167; Niagara Mohawk,92; Northern Telecom Inc., 171-180; trends, 31-32

Trans World Airlines (TWA), 73

U

United Technologies Corporation(UTC), 73. See also Carrier Cor-poration

Universities. See Educational institu-tions

University of Wisconsin, Madison, 64Upgrade training, 3, 45-47, 51-52, 53U.S. Department of Defense, 53

V

Vendors, 38, 54-55, 69. See also Educa-tional institutions; Providers, train-ing: external

Video technology, interactive, 75-76Vocational resource center (VRC;

Ohio), 67Vocational, trade, and business schools,

52-53. See also Educational insti-tutions

W

Warmbrod, C. P., 71, 72Wiant, A., 61, 62William T. Grant Foundation Com-

mission on Work, Family, and Cit-izenship, 1

Work exchange, 64-65

training the technical work force. astd best practices series

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